Oil futures shed over one percent in American trade
2017-10-12 18:57:27 GMT (Economies.com)
Oil futures shed over one percent in American trade

Oil futures fell over one percent as the dollar index advanced for the first time in five sessions, following an array of data from the US, the world's largest energy consumer, including the EIA report that showed another inventory drawdown. 


As of 05:56 GMT, US crude futures due on November 15 slid 1.29% to $50.64 a barrel from the opening of $51.30, while Brent crude futures due on December 15 tumbled 1.07% to $56.33 a barrel from the opening of $56.94, as the dollar index added 0.12% to 93.13 from the opening of 93.01. 


Earlier US data showed unemployment claims fell more than expected last week, as producers prices grew 0.4% in line with expectations in September, as core prices accelerated to 0.4% beyond forecasts. 


Fed member member Lael Brainard participated in a panel discussion about monetary policy at the Peterson Institute for International Economics, in Washington DC, where she said in case of a future recession, it might be better to organize the rate hike process by committing to zero level rates until inflation hits the target, noting that a delayed march by inflation towards 2% is enough case against early rate hikes. 


The Energy Information Administration released its report on US crude stocks, showing a deficit of 2.8 million barrels in the week ending October 6, adding to the previous reading's 6.0M drop, while analysts expected a 1.9M drawdown, with total stocks now falling to 462.2 million barrels, still remaining within the upward range on average in this time of year. 


Otherwise, gasoline stocks in the world's largest energy consumer rose 2.5 million barrels, remaining within the upward range on average in this time of year, while distillate stocks, including heating fuel, fell 1.5 million barrels, remaining within the downward range on average in this time of year.  


Earlier as well, the International Energy Agency released its monthly report, at which it forecast global demand growth for oil next year at 1.4 million bpd, while forecasting an increase in oil supplies outside OPEC by 700 thousand bpd in 2017, and by 1.8 million bpd in 2018, to reach 59.6 million bpd. 


The report showed global crude supplies rose 90 thousand bpd in September, however, the IEA pointed to general stability in the oil market recently, while expecting oil inventories to fall by 110 thousand bpd this year, and by 200 thousand bpd in 2018. 


Oil futures are weakening on profit taking after surging on Tuesday, after Saudi Arabia's energy ministry announced that Aramco will cut 560 thousand bpd in exports in November, as the world's largest crude exporter plans to export 7.15 million bpd despite the upward demand of 7.7 million bpd. 


Otherwise, oil companies are working to bring back their operations in the Mexico Gulf, accounting for 17% of US shale production, after Storm Nate hit the south coast on Sunday, bringing 90% of the production effort to an abrupt stop. 

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