Oil accumulates nearly 1% as the week wraps up
2017-07-14 18:08:16 GMT (Economies.com)
Oil accumulates nearly 1% as the week wraps up

Oil futures rose nearly one percent for the fifth session in a row as the dollar index swooned to a ten-month trough, following earlier data from the US, the world's largest energy consumer. 


As of 06:41 GMT, US crude futures due on August 16 rose 0.74% to $46.42 a barrel from the opening of $46.08, while Brent crude futures due on September 15 climbed 0.76% to $48.79 a barrel from the opening of $48.42, as the dollar index slid 0.48% to 95.27 from the opening of 95.76, marking the lowest since September 12. 


Earlier US data showed consumer prices slowing down on a yearly basis in June, while retail sales fell further unexpectedly last month. 


US industrial production grew more than expected in June, while the Capacity Utilization Rate rose below expectations, as business inventories matched expectations in gains, while the preliminary UoM consumer sentiment survey fell unexpectedly in July. 


The mostly negative data came after Federal Reserve Chair Janet Yellen presented the second part of her Congressional testimony about monetary policy ahead of the Senate Banking Committee yesterday, and now could force the Federal Open Market Committee to hold on tightening the policy in the July 25-26 meeting, weighing on the greenback today.


Otherwise, oil futures were bolstered today as demand climbed in China and overpowered oversupply concerns around the globe. 


China imported 8.55 million bpd of crude oil in the first half of the year, up 14% y/y, making China the world's largest oil importer. 


The IEA said it's less confident that global markets will regain their balance as expected before, as OPEC production climbs and global inventories don't fall as fast as though. 


The compliance rate for OPEC producers with output cuts fell to 78% in June from 95%, after some countries pumped more than their limits, like Iraq, Emirates, and Venezuela, while the agency upgraded its global demand growth forecasts by 100 thousand bpd to 1.4 million bpd in 2017, as global supplies fell to 266 million bod in May from 300 million bpd in April. 


Earlier this week, the Energy Information Administration released its report on US crude stocks, showing a sharp fall of 7.6 million barrels in the week ending July 7, adding to a 6.3M drawdown in the previous reading, while analysts expected only a 3.2M drop, with total inventories now reaching 495.4 million barrels, remaining within the uppermost range on average in this time of year. 


Otherwise, gasoline stocks fell 1.6 million barrels, while distillate inventories, including heating fuel, rose 3.1 million barrels, both remaining within the uppermost range on average in this time of year.

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