Published: Thu, August 17, 2017
Business | By Max Garcia

USA crude inventory drops almost 9 MMBbl

USA crude inventory drops almost 9 MMBbl

-Investors focused overnight on average daily US oil production jumping to 9.5 million barrels, according to government data, and not the bigger-than-expected drop in crude inventories there.

Crude prices in the United States pared morning gains on Wednesday after the release of key oil inventory data.

Brent crude oil futures fell 0.53 dollar or 1.04 percent to close at USD 50.27 a barrel at NYMEX.

Distillate inventories were down by 2.1 million barrels, while inventories at the Cushing, Oklahoma site increased by 1.7 million barrels.

Oil futures struggled for direction on Thursday, a day after heavy selling that came on the back of data showing US oil production has jumped to an over two-year high.

Gasoline inventories rose by 301,000 barrels for the week ending August 11, compared to analyst expectations that inventories for the fuel would fall by 1.5 million barrels. In July 2017, OPEC oil production rose to ~32.9 million barrels per day above the pledged output level of 32.5 million barrels per day. Crude oil exports also rose, jumping to 877,000 bpd from 707,000 bpd.

The Organization of the Petroleum Exporting Countries together with non-OPEC producers including Russian Federation have pledged to restrict output by 1.8 bpd between January this year and March 2018.

However, the market was eventually able shrug off this data and hone in on production figures that continue to creep higher.

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