Published: Thu, September 14, 2017
World Media | By Shelia Harmon

Oil Prices Hold Gains as Stockpile Numbers Hike

Oil Prices Hold Gains as Stockpile Numbers Hike

Data released by the Energy Information Agency (EIA) showed US commercial crude inventories rose by 5.9 million barrels in the week through September 8, almost doubling analysts' estimates for a rise of 3.2 million barrels.

Analysts at Drillinginfo.com noted that for oil to rally and hold those gains, the IEA's demand projections have to pan out, along with the ongoing supply cuts, to help inventories fall.

The kingdom and Kazakhstan said such an extension "would be considered in due course as market fundamentals may dictate", according to a separate Saudi statement.

The VanEck Vectors Oil Services ETF (NYSEMKT: OIH) traded up about 1.7%, at $22.27 in a 52-week range of $21.70 to $36.35.

According to the report, the value of Iranian heavy crude was further lifted buoyed again by an uplift in OSP offsets and supported by healthy global sour markets.

Oil prices edged up Tuesday, as the Organization of the Petroleum Exporting Countries (OPEC) said its output fell in August in its monthly report. Benchmark Brent crude rose 53 cents a barrel or almost 1 percent, to trade at $54.80.

Nymex reformulated gasoline blendstock-the benchmark gasoline contract-rose 0.1% to $1.66 a gallon. The IEA raised its global oil demand forecast by very strong 1.6 million barrels a day while admitting that OPEC compliance to production cuts have improved.

International Energy Agency has increased its growth estimate for the year to 1.6 million barrels per day. Nigeria is expecting pressure from other OPEC members at the cartel's regular meeting in November this year, He also expressed his skepticism of initial OPEC oil price target of $60 per barrel in the wake of the deal.

Traders have been watching the level of commercial crude oil and petroleum product inventories for much of the year in part to gauge the impact of an effort led by the Organization of Petroleum Exporting Countries to balance an oversupplied market with managed production declines. Total volume traded was about 3% below the 100-day average.

U.S. Energy Information Administration (EIA) data showed a build of 5.9 million barrels of crude last week, exceeding expectations. "Due to the demand-focused impact of Irma, we find that, by the end of September, gasoline and distillate stocks respectively are only -8 million barrels and -13 million barrels lower respectively than they otherwise would have been".

Like this: