According to the American Petroleum Institute, crude inventories have decreased last week by 8.67 million barrels. Another batch of data is waiting to be released later today. At the moment oil rebounded from the lowest level in more than two weeks.
Oil prices are climbing today after U.S. reports showed the surplus in crude stockpiles is continously shrinking. Oil futures advanced 1.6 percent, after losing 3 percent during the previous two sessions. The American Petroleum Institute has reported that the U.S. inventories fell by 8.67 million barrels last week.
We are expecting government stockpiles data later on today. It is forcasted to show a drop by 3 million barrels, making it the eight straight drop. Dangers for the stability of the prices remain in places as output from Libya rose to the highest level since October 2014 due to production rise from its biggest oil field.
Last week the Organization of Petroleum Exporting Countries and some other major producers decided to extend the output cuts program for the next nine months. Even that disappointed some investors as they were hoping for deeper cuts than the current 1.8 million barrels per day.
According to chief energy analyst at Natixis SA in London, Abhishek Deshpande, investors will be eyeing the weekly Energy Information Administration data release and “any impact on U.S. crude stockpiles will be extrapolated globally”
U.S. crude stockpiles have declined since hitting a record 535.5 million barrels at the end of March, according to EIA data. While inventories shrank, output has climbed to the highest since August 2015, driven mostly by shale-oil producers.
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