Published: Sun, April 08, 2018
Finance | By Cynthia Curry

Oil Prices Head Higher On Large Crude Draw

Oil Prices Head Higher On Large Crude Draw

"While there was a surprise drop in USA stockpiles, we should note that they have been steadily rising since January this year", Min Byungkyu, a global market strategist at Yuanta Securities Co., said by phone in Seoul.

Crude oil futures fell sharply Friday along with USA stocks. West Texas Intermediate crude for May delivery traded at $63.57 a barrel in electronic trade, up from its settlement of $63.51.

Even after crude was propped up in February by rising geopolitical risks surrounding the United States and Middle East producer Iran, it's still struggling to recover to the highs of January, with concerns over a global trade war also weighing on prices.

China, the world's largest importer of raw materials, hit back at the Trump administration's plan to levy tariffs on $50 billion of its goods, retaliating with a list of duties on US imports including soybeans, planes, cars, whiskey and chemicals. Official data from the Energy Information Administration (EIA) will be released later today.

Amazon Giving Out Echo Devices, Credit To Android Gamers
Unlike Groups, which just controls multiple bulbs, plugs and other devices in one go, Routines offers much finer control. Google began offering this same functionality for its Google Home line of smart speakers this past November.

Global equities sank after China unveiled its charges, which match the scale of proposed USA tariffs announced earlier this week and ratchets up tension in a brewing trade war between the world's two largest economies. But prices rebounded after USA crude inventories fell by 4.6-million barrels last week, compared with analysts' expectations for an increase of 246,000 barrels, according to Energy Information Administration (EIA) data. Last week, reserves fell by 4.6 million barrels, while analysts expected a 246,000-barrel growth.

Bullish market sentiment has been supporting the record net speculative length in ICE Brent futures, which hit a record high of 595,596, up 34,388 from the previous week, as the front-month contract hovered above $70/b during the reporting period ending March 27. Prices slipped 10 cents, or 0.2 percent, to $68.02 Wednesday. The reason is the low exports from Angola and the temporary problems in Libya. Inventories are forecast to have risen by 2 million barrels, according to a Bloomberg survey.

The cuts run until the end of 2018 but Saudi Arabia has said they could be extended in some form into 2019.

Like this: