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Hong Kong - Oil traded near $45 a barrel as investors weigh resurgent US output against declining crude and gasoline stockpiles.
Futures were little changed in New York after rising 2.9% the previous three sessions. Crude production last week expanded to the highest since July 2015, according to government data on Wednesday. Crude inventories fell by 7.56 million barrels, more than triple the median estimate in a Bloomberg survey and the most since September. Gasoline supplies slid for a fourth week.
Oil remains in a bear market on concern rising global supply will offset curbs by the Organisation of Petroleum Exporting Countries and its partners including Russia. OPEC’s first assessment of world markets in 2018 suggested that its current output, at 32.6 million barrels a day, will be too high as rival supplies expand and demand growth remains steady.
“Oil will be in a bear market for a while as traders are concerned about the continuous production growth in the US,” said Kim Kwang Rae, a commodities analyst at Samsung Futures in Seoul. “US crude stockpiles dropped more than the market expected, which will give temporary support to oil prices.”
West Texas Intermediate for August delivery was at $45.47 a barrel on the New York Mercantile Exchange, down 2 cents, at 08:53 after losing as much as 0.6% earlier. Total volume traded was about 33% below the 100-day average. Prices gained 45c to $45.49 on Wednesday.
Brent for September settlement dropped 4c to $47.70 a barrel on the London-based ICE Futures Europe exchange. Prices advanced 22c to close at $47.74 on Wednesday. The global benchmark crude traded at a premium of $2.07 to September WTI.
US crude production rose by 59 000 barrels a day to 9.4 million, climbing for a second week, according to the Energy Information Administration. Gasoline stockpiles fell by 1.65 million barrels to 235.7 million.
Oil-market news:
China imported more oil than the US in the first six months of the year as the world’s largest energy user boosted inbound shipments to meet growing demand from independent refiners. Libyan output climbed to 1.05 million barrels a day, according to a person with direct knowledge of the matter.
It’s the highest level since 2013, according to data compiled by Bloomberg. Nigeria signaled its willingness to cap its output when it increases to 1.8 million barrels a day to support OPEC’s efforts to ease a global glut.
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