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Oil prices stable as lower crude stocks counter soaring US output

Reuters  |  SINGAPORE 

By Henning Gloystein

(Reuters) - prices were stable on Thursday as a fall in U.S. crude inventories was countered by soaring output and a rise in fuel stocks.

U.S. West Texas Intermediate (WTI) crude futures were at $55.92 a barrel at 0751 GMT, down 4 cents from their last settlement.

Brent crude futures, the international benchmark for prices, were at $61.28 a barrel, up 6 cents.

U.S. crude inventories fell by 5.6 million barrels in the week to Dec. 1, to 448.1 million barrels, putting stocks below seasonal levels in 2015 and 2016.

Despite this, prices were prevented from rising further.

"Traders were more concerned about the steep rise in gasoline inventories," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in

Gasoline stocks rose 6.8 million barrels, to 220.9 million barrels, according to the report from the U.S. Energy Information Administration (EIA), much more than analyst expectations in a poll for a gain of 1.7 million barrels.

"This suggests that refiners may not need to process as much crude in the future," ANZ said in a note on Thursday.

"Demand isn't as good as people say," said Matt Stanley, a fuel broker for Freight Investor Services (FIS) in Dubai.

Adding to this was another rise in U.S. production, which climbed by 25,000 barrels per day (bpd) to 9.71 million bpd, the highest since monthly figures showing the United States produced more than 10 million bpd in the early 1970s.

Soaring U.S. output threatens to undermine efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia to bring production and demand into balance following years of oversupply.

Sukrit Vijayakar, managing director of energy consultancy Trifecta warned there were "darker shadows over the pace of rebalancing, if at all any is taking place."

(Reporting by Henning Gloystein; Editing by Joseph Radford and Tom Hogue)

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

First Published: Thu, December 07 2017. 13:29 IST