Oil futures dip at the end of bustling week
2017-08-11 17:44:18 GMT (Economies.com)
Oil futures dip at the end of bustling week

Oil futures slid in American trade even as the dollar index gave up ground, following earlier data from the US, the world's largest economy, and after Saudi oil minister Khalid Al-Fallah praised Iraq's efforts to comply with the global deal to cut output, pointing to the possibility of extending the duration of the deal or deepening production cuts later if needed. 


As of 06:16 GMT, US crude futures due on September 15 shed 0.14% to $48.52 a barrel from the opening of $48.59, while Brent crude futures due on October 16 declined 0.29% to $51.75 a barrel from the opening of $51.90, as the dollar index dipped 0.22% to 93.19 from the opening of 93.40. 


Earlier US data showed consumer prices rose 0.1% in July, up from no-change in June, and missing expectations of 0.2%, while core prices steadied at 0.1%, also below expectations of 0.2%, and on a yearly basis, prices accelerated to 1.7%, missing forecasts of 1.8%, while core prices steadied at 1.7% in line with expectations last month. 


OPEC's earlier monthly report showed production levels rose by 173 thousand bpd to 32.87 million bpd in July, pointing the finger at Libya and Nigeria in particular for their exempt status from the deal to cut production by 1.8 million bpd until next March. 


OPEC is responsible for 1.2M of these cuts, while Russia and other independent producers take charge of 0.6 million, and additionally, the report said Saudi Arabia increased output by 32 thousand bpd to 10.07 million bpd, while Iraqi and Venezuelan production fell, and global supplies overall rose by 17 thousand bpd to an average of 97.3 million bpd. 


The report maintained its projections for global demand growth at 1.37 million bpd in the next half of 2017 to an overall average of 57.77 million bpd, while stating the oil imports rose last month by 33 thousand bpd to 8 million bpd, compared to 7.9 million in June, as price rose 4% compared to June levels. 


Last Wednesday, the Energy Information Administration released its report on US crude stocks, showing a drawdown of 6.5 million barrels in the week ending August 4, adding to the 1.5M drop in the previous reading, while analysts expected only a 2.6M decline, with total stocks now reaching 475.4 million barrels, remaining within the uppermost range on average in this time of year. 


Otherwise, gasoline stocks rose 3.4 million barrels, bucking the trend, while distillate inventories, including heat fuel, fell 1.7 million barrels, both remaining within the uppermost range on average in this time of year. 


The Opec and non-Opec oversight meeting taking place in Abu Dhaba was just wrapped up earlier thus weel, with officials from Russia and Kuwait discussing the best ways to uphold the compliance rate the rate after falling recently due to output increase from exempted Nigeria and Libya. 

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