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Oil prices dip on bloated U.S. market, mixed Saudi signals

Reuters  |  SINGAPORE 

By Henning Gloystein

(Reuters) - prices dipped on Wednesday as bloated U.S. supplies weighed on markets while a fall in Saudi crude was offset by rising production in the country.

Brent crude futures, the international benchmark for oil, were at $54.77 per barrel at 0354 GMT, down 12 cents from their last close.

U.S. West Texas Intermediate (WTI) crude futures were down 9 cents at $52.32 a barrel.

"Crude prices were slightly weaker as the focus turned back to U.S. inventories and output," ANZ bank said on Wednesday.

Data from the American Petroleum Institute (API) on Tuesday showed that U.S. markets remained bloated.

Although crude inventories fell by 840,000 barrels in the week to April 14 to 531.6 million barrels, still close to record highs, gasoline stocks rose by 1.4 million barrels as refinery crude runs increased by 334,000 bpd, the API said.

Official U.S. data is expected to be published later on Wednesday by the Energy Information Administration (EIA).

Outside the United States, a fall in Saudi output as part of its planned production cuts for the first half of this year lent the market some support.

The Organization of the Petroleum Exporting Countries (OPEC), of which is the de-facto leader, together with other producers like Russia have agreed to cut output by almost 1.8 million barrels per day (bpd) during the first half of the year to rein in a fuel supply overhang and prop up prices.

Saudi crude fell to 6.96 million bpd in February, from 7.7 million bpd in January, according to the Joint Organisations Data Initiative (Jodi).

However, Saudi production rose to 10 million bpd in February, up from 9.75 million bpd the previous month, the Jodi data showed, as domestic refiners processed more crude

This means that the Saudi may still make its way into a glutted market as significant proportions of its refined fuel products are exported.

In politics, U.S. President Donald Trump has ordered an inter-agency review of whether the lifting of sanctions against Iran under a 2015 nuclear deal was in the United States' national security interests, Secretary of State Rex Tillerson said late on Tuesday.

Many U.S. sanctions against Iran were lifted in late 2015, allowing Tehran to boost its crude from 2016 which added to the glut.

(Reporting by Henning Gloystein; Editing by Joseph Radford and Christian Schmollinger)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Oil prices dip on bloated U.S. market, mixed Saudi signals

SINGAPORE (Reuters) - Oil prices dipped on Wednesday as bloated U.S. supplies weighed on markets while a fall in Saudi crude exports was offset by rising production in the country.

By Henning Gloystein

(Reuters) - prices dipped on Wednesday as bloated U.S. supplies weighed on markets while a fall in Saudi crude was offset by rising production in the country.

Brent crude futures, the international benchmark for oil, were at $54.77 per barrel at 0354 GMT, down 12 cents from their last close.

U.S. West Texas Intermediate (WTI) crude futures were down 9 cents at $52.32 a barrel.

"Crude prices were slightly weaker as the focus turned back to U.S. inventories and output," ANZ bank said on Wednesday.

Data from the American Petroleum Institute (API) on Tuesday showed that U.S. markets remained bloated.

Although crude inventories fell by 840,000 barrels in the week to April 14 to 531.6 million barrels, still close to record highs, gasoline stocks rose by 1.4 million barrels as refinery crude runs increased by 334,000 bpd, the API said.

Official U.S. data is expected to be published later on Wednesday by the Energy Information Administration (EIA).

Outside the United States, a fall in Saudi output as part of its planned production cuts for the first half of this year lent the market some support.

The Organization of the Petroleum Exporting Countries (OPEC), of which is the de-facto leader, together with other producers like Russia have agreed to cut output by almost 1.8 million barrels per day (bpd) during the first half of the year to rein in a fuel supply overhang and prop up prices.

Saudi crude fell to 6.96 million bpd in February, from 7.7 million bpd in January, according to the Joint Organisations Data Initiative (Jodi).

However, Saudi production rose to 10 million bpd in February, up from 9.75 million bpd the previous month, the Jodi data showed, as domestic refiners processed more crude

This means that the Saudi may still make its way into a glutted market as significant proportions of its refined fuel products are exported.

In politics, U.S. President Donald Trump has ordered an inter-agency review of whether the lifting of sanctions against Iran under a 2015 nuclear deal was in the United States' national security interests, Secretary of State Rex Tillerson said late on Tuesday.

Many U.S. sanctions against Iran were lifted in late 2015, allowing Tehran to boost its crude from 2016 which added to the glut.

(Reporting by Henning Gloystein; Editing by Joseph Radford and Christian Schmollinger)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
177 22

Oil prices dip on bloated U.S. market, mixed Saudi signals

By Henning Gloystein

(Reuters) - prices dipped on Wednesday as bloated U.S. supplies weighed on markets while a fall in Saudi crude was offset by rising production in the country.

Brent crude futures, the international benchmark for oil, were at $54.77 per barrel at 0354 GMT, down 12 cents from their last close.

U.S. West Texas Intermediate (WTI) crude futures were down 9 cents at $52.32 a barrel.

"Crude prices were slightly weaker as the focus turned back to U.S. inventories and output," ANZ bank said on Wednesday.

Data from the American Petroleum Institute (API) on Tuesday showed that U.S. markets remained bloated.

Although crude inventories fell by 840,000 barrels in the week to April 14 to 531.6 million barrels, still close to record highs, gasoline stocks rose by 1.4 million barrels as refinery crude runs increased by 334,000 bpd, the API said.

Official U.S. data is expected to be published later on Wednesday by the Energy Information Administration (EIA).

Outside the United States, a fall in Saudi output as part of its planned production cuts for the first half of this year lent the market some support.

The Organization of the Petroleum Exporting Countries (OPEC), of which is the de-facto leader, together with other producers like Russia have agreed to cut output by almost 1.8 million barrels per day (bpd) during the first half of the year to rein in a fuel supply overhang and prop up prices.

Saudi crude fell to 6.96 million bpd in February, from 7.7 million bpd in January, according to the Joint Organisations Data Initiative (Jodi).

However, Saudi production rose to 10 million bpd in February, up from 9.75 million bpd the previous month, the Jodi data showed, as domestic refiners processed more crude

This means that the Saudi may still make its way into a glutted market as significant proportions of its refined fuel products are exported.

In politics, U.S. President Donald Trump has ordered an inter-agency review of whether the lifting of sanctions against Iran under a 2015 nuclear deal was in the United States' national security interests, Secretary of State Rex Tillerson said late on Tuesday.

Many U.S. sanctions against Iran were lifted in late 2015, allowing Tehran to boost its crude from 2016 which added to the glut.

(Reporting by Henning Gloystein; Editing by Joseph Radford and Christian Schmollinger)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22