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Oil rises further above $52 on tighter U.S. fuel stocks

Reuters  |  LONDON 

By Alex Lawler

(Reuters) - climbed further above $52 a barrel on Friday, supported by a drop in U.S. fuel inventories, though gains were kept in check by ample crude supplies even as OPEC plans to cut output.

Brent crude reached a 2016 high near $54 on Monday, underpinned by OPEC's Sept. 28 deal to reduce production, before weakening on rising U.S. crude stocks and as the Organization of the Petroleum Exporting Countries' own numbers showed output is still rising. [OPEC/M]

benchmark Brent rose 39 cents to $52.42 by 0859 GMT, with U.S. crude up 57 cents at $51.01.

U.S. inventories of distillates, which include diesel and heating oil, fell by 3.7 million barrels, the government's weekly supply report said on Thursday. Gasoline stocks fell by 1.9 million barrels. [EIA/S]

"The end result was slightly positive," Stephen Brennock, of broker PVM, said in a report, referring to Thursday's U.S. supply data. The rise in crude stocks was "more than offset" by lower fuel inventories, he said.

Stocks at the Cushing delivery hub for U.S. crude also declined, but crude inventories overall rose by 4.9 million barrels, the first increase in six weeks.

U.S. crude's structure gained support from the extended outage of a pipeline capable of delivering 450,000 barrels per day of crude into Cushing, traders said..

OPEC's plan is to cut its supply to between 32.5 million barrels per day (bpd) and 33 million bpd to help to balance supply and demand and revive prices that remain less than half of the levels reached in mid-2014.

However, a lack of much detail in the initial agreement, such as how much each of the 14 members can pump and the scale of any contributions from non-OPEC countries such as Russia, has left analysts sceptical.

"We are doubtful that OPEC's efforts, even if successful in achieving a targeted 32.5 million bpd in collective output, will prove sufficient to materially alter the balance and deliver a substantial reduction in inventories," BNP Paribas said in a report.

OPEC's own monthly report on Wednesday put production at 33.39 million bpd in September.

(Additional reporting by Henning Gloystein; Editing by David Goodman)

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

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Oil rises further above $52 on tighter U.S. fuel stocks

LONDON (Reuters) - Oil climbed further above $52 a barrel on Friday, supported by a drop in U.S. fuel inventories, though gains were kept in check by ample crude supplies even as OPEC plans to cut output.

By Alex Lawler

(Reuters) - climbed further above $52 a barrel on Friday, supported by a drop in U.S. fuel inventories, though gains were kept in check by ample crude supplies even as OPEC plans to cut output.

Brent crude reached a 2016 high near $54 on Monday, underpinned by OPEC's Sept. 28 deal to reduce production, before weakening on rising U.S. crude stocks and as the Organization of the Petroleum Exporting Countries' own numbers showed output is still rising. [OPEC/M]

benchmark Brent rose 39 cents to $52.42 by 0859 GMT, with U.S. crude up 57 cents at $51.01.

U.S. inventories of distillates, which include diesel and heating oil, fell by 3.7 million barrels, the government's weekly supply report said on Thursday. Gasoline stocks fell by 1.9 million barrels. [EIA/S]

"The end result was slightly positive," Stephen Brennock, of broker PVM, said in a report, referring to Thursday's U.S. supply data. The rise in crude stocks was "more than offset" by lower fuel inventories, he said.

Stocks at the Cushing delivery hub for U.S. crude also declined, but crude inventories overall rose by 4.9 million barrels, the first increase in six weeks.

U.S. crude's structure gained support from the extended outage of a pipeline capable of delivering 450,000 barrels per day of crude into Cushing, traders said..

OPEC's plan is to cut its supply to between 32.5 million barrels per day (bpd) and 33 million bpd to help to balance supply and demand and revive prices that remain less than half of the levels reached in mid-2014.

However, a lack of much detail in the initial agreement, such as how much each of the 14 members can pump and the scale of any contributions from non-OPEC countries such as Russia, has left analysts sceptical.

"We are doubtful that OPEC's efforts, even if successful in achieving a targeted 32.5 million bpd in collective output, will prove sufficient to materially alter the balance and deliver a substantial reduction in inventories," BNP Paribas said in a report.

OPEC's own monthly report on Wednesday put production at 33.39 million bpd in September.

(Additional reporting by Henning Gloystein; Editing by David Goodman)

(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 rises further above $52 on tighter U.S. fuel stocks

By Alex Lawler

(Reuters) - climbed further above $52 a barrel on Friday, supported by a drop in U.S. fuel inventories, though gains were kept in check by ample crude supplies even as OPEC plans to cut output.

Brent crude reached a 2016 high near $54 on Monday, underpinned by OPEC's Sept. 28 deal to reduce production, before weakening on rising U.S. crude stocks and as the Organization of the Petroleum Exporting Countries' own numbers showed output is still rising. [OPEC/M]

benchmark Brent rose 39 cents to $52.42 by 0859 GMT, with U.S. crude up 57 cents at $51.01.

U.S. inventories of distillates, which include diesel and heating oil, fell by 3.7 million barrels, the government's weekly supply report said on Thursday. Gasoline stocks fell by 1.9 million barrels. [EIA/S]

"The end result was slightly positive," Stephen Brennock, of broker PVM, said in a report, referring to Thursday's U.S. supply data. The rise in crude stocks was "more than offset" by lower fuel inventories, he said.

Stocks at the Cushing delivery hub for U.S. crude also declined, but crude inventories overall rose by 4.9 million barrels, the first increase in six weeks.

U.S. crude's structure gained support from the extended outage of a pipeline capable of delivering 450,000 barrels per day of crude into Cushing, traders said..

OPEC's plan is to cut its supply to between 32.5 million barrels per day (bpd) and 33 million bpd to help to balance supply and demand and revive prices that remain less than half of the levels reached in mid-2014.

However, a lack of much detail in the initial agreement, such as how much each of the 14 members can pump and the scale of any contributions from non-OPEC countries such as Russia, has left analysts sceptical.

"We are doubtful that OPEC's efforts, even if successful in achieving a targeted 32.5 million bpd in collective output, will prove sufficient to materially alter the balance and deliver a substantial reduction in inventories," BNP Paribas said in a report.

OPEC's own monthly report on Wednesday put production at 33.39 million bpd in September.

(Additional reporting by Henning Gloystein; Editing by David Goodman)

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

image
Business Standard
177 22

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