Crude Climbs as U.S. Storage Nosedives and Foreign Orders Jump

Futures advanced 0.9 percent in New York. American crude inventories tumbled by 6.5 million barrels last week, more than double the average estimate in a Bloomberg survey. Exports surged by the most on record as domestic explorers sent cargoes to foreign shores where they fetched higher prices.

“Crude inventories are just taking a nose-dive,” Matt Sallee, who helps manage $16 billion in oil-related assets at Tortoise Capital Advisors LLC, said by telephone. The price gap that’s making American oil more attractive to overseas buyers is “supporting pretty robust exports.”

Yet, gasoline stockpiles rose for a sixth week and diesel supplies unexpectedly edged higher.

Oil is on track for a yearly rise following a decision by the Organization of Petroleum Exporting Countries and its allies to extend supply cutbacks through the end of 2018. Global stockpiles will remain below seasonal levels and continue to shrink through the second quarter of next year, according to Goldman Sachs Group Inc.

U.S. crude inventories slipped to 436.5 million barrels last week, the lowest level since October 2015, while crude exports jumped by 772,000 barrels a day, the Energy Information Administration said on Wednesday.

Meanwhile, gasoline stockpiles climbed 1.24 million barrels, and distillate supplies increased by 769,000 barrels, more than triple what was forecast in a Bloomberg survey. Crude production remained at a record-high.
more at:  https://www.bloomberg.com/news/articles/2017-12-20/oil-gains-as-larger-than-expected-u-s-stockpile-drop-signaled