Oil Drops as Industry Data Show U.S. Gasoline Stockpiles Grew

Futures dropped 1.3 percent in New York after rising 0.3 percent on Tuesday. Motor-fuel inventories climbed by 9.2 million barrels last week, the American Petroleum Institute was said to report. That would be the biggest gain since January 2016 if replicated in government data due later on Wednesday. Nationwide crude stockpiles declined, according to the API data.

“This bears all the hallmarks of a year-end lull in U.S. fuel demand, which in turn should help safeguard the current bout of range-bound trading,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd. in London.

Oil is averaging about $54 a barrel this quarter, the highest in more than two years, after the Organization of Petroleum Exporting Countries and its allies agreed to extend output cuts to the end of 2018. The new deal brought in Libya and Nigeria, assigning them a combined cap. Libya will maintain current output to stay in line with the agreement, a person familiar with the matter said.

U.S. crude inventories dropped by 5.48 million barrels last week, the API said Tuesday, according to people familiar with the data. A Bloomberg survey predicted government data will show a decline of 2.5 million barrels.
more at:  https://www.bloomberg.com/news/articles/2017-12-05/oil-dips-toward-57-on-signs-u-s-gasoline-stockpiles-expanded

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Key Currency Exchange Rates for Friday, 8/2/24

American Dollar to Canadian Dollar = 0.720605; American Dollar to Chinese Yuan = 0.138754; American Dollar to Euro = 1.083126; American Dollar to Japanese Yen = 0.006708; American Dollar to Mexican Peso = 0.052741.

Oil Slides Before U.S. Data as IEA Warns of Ceiling for Prices

Futures lost 0.9 percent in New York after climbing 4.1 percent in the previous three sessions. Inventories rose by 3.1 million barrels last week, the American Petroleum Institute was said to report. Energy Information Administration data Thursday is forecast to show stockpiles dropped for a third week. Global supply and demand estimates for 2018 indicate that stockpiles may not fall further, potentially capping prices, according to the International Energy Agency. “According to the IEA’s calculation, at the current level of OPEC production there will be no global stock draws next year,” said Olivier Jakob, managing director of consultants Petromatrix GmbH in Zug, Switzerland. “If the IEA is right, then markets will continue to trade in the narrow” price band seen recently. Global oil stockpiles will fall this year by 300,000 barrels a day as stronger demand and output curbs by OPEC and Russia whittle away a surplus, the IEA said Thursday in its monthly report. Still, even if the producers decide to continue with the cuts next year, surging supplies from the U.S. and elsewhere will prevent inventories dropping further. Click Read More below for additional information.

Key Currency Exchange Rates for Friday, 9/4/20

American Dollar to Canadian Dollar = 0.763715; American Dollar to Chinese Yuan = 0.146182; American Dollar to Euro = 1.184258; American Dollar to Japanese Yen = 0.009415; American Dollar to Mexican Peso = 0.046409.
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