Market Watch، 22 Sep. 2016- Crude oil futures made gains in early Asia trade Thursday thanks to a third consecutive week of a drawdown in U.S. crude inventories.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in November CLX6, +0.97% traded at $45.82 a barrel, up $0.48, or 1%, in the Globex electronic session. November Brent crude LCOX6, +0.92% on London’s ICE Futures exchange rose $0.50, or 1%, to $47.33 a barrel.
Prices rallied overnight after data released by the U.S. Energy Information Administration showed a bigger-than-expected 6.2-million barrels fall in domestic crude stockpiles for the week ended Sept. 16. At 504.6 million barrels, crude inventories were the lowest since Feb. 12, but still 11% above year-ago levels, said EIA.
“Those who are banking on OPEC to cut or freeze production really should stop dreaming.”
Chinese fuel-oil trader based in Singapore
“Relatively strong refinery activity for this time of year has put downward pressure on crude stocks,” said research firm S&P Global Platts, noting crude run last week at 16.6 million barrels a day was 941,000 barrels a day higher than the five-year average. The refinery utilization rate reached 92%.
Analysts say the global market still remains oversupplied. Production from the Organization of the Petroleum Exporting Countries has grown in recent months owing to record Saudi Arabian production and more coming from Iraq and Iran.
“Global oil markets are digesting events in Libya and Nigeria, where some output is returning from previous disruptions,” said Michael Wittner, chief analyst at Societe Generale. “Time will tell how much output is returning from previous disruptions.”
On Wednesday, an oil tanker left the Libyan port of Ras Lanouf for Italy, marking the first crude export cargo from the terminal since late 2014.
Libya’s National Oil Corp. is also urging anti-government military groups to unblock the Sharara and El Feel oil fields immediately. In a statement, the NOC said the country’s oil production could return to 1.2 million barrels a day within a year if all the pipelines are unfettered and the government releases the requested budget.
“It is time to let Libya’s oil flow freely and get Libya back on its feet,” the statement said.
On Wednesday, OPEC members will meet in Algeria to discuss measures to stabilize prices, but many market watchers remain skeptical of any real action given the longstanding tensions within the group.
“Those who are banking on OPEC to cut or freeze production really should stop dreaming,”a Chinese fuel-oil trader based in Singapore said bluntly. :
Nymex reformulated gasoline blendstock for October RBX6, +0.57% — the benchmark gasoline contract — rose 43 points to $1.4033 a gallon, while October diesel traded at $1.4403, 113 points higher.
ICE gasoil for October changed hands at $422.25 a metric ton, up $4.00 from Wednesday’s settlement.