Oil Slips as U.S. Product Stockpiles Build, Traders Take Profit

Futures fell as much as 1.7 percent after rising almost 3 percent the past four sessions. Gasoline stockpiles expanded for a fourth week, while distillate supplies rose for the first time since August, U.S. government data showed. In the Middle East, exports from northern Iraq fell by more than half amid fighting between government troops and Kurdish forces.

Crude had risen since late last week as tensions in Iraq, OPEC’s second-largest producer, led to the halt of production at two Kirkuk fields. The resulting export curbs pushed oil in the U.S. to a three-week high on Wednesday but Brent has failed to breach last month’s peak and dropped below $58 following the inventory data.

Prices reflect “oil bulls taking profit after the supply disruption in Iraq failed to drive Brent to new highs,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S. “It’s a classic risk-off move. On balance, I believe yesterday’s EIA report was net bearish.”

West Texas Intermediate for November delivery, which expires Friday, dropped as much as 87 cents on the New York Mercantile Exchange, and was down 60 cents at $51.44 a barrel as of 11:50 a.m. London time. Prices closed at $52.04 on Wednesday, the highest since Sept. 27. Total volume traded Thursday was about 13 percent above the 100-day average. The more-active December contract lost 61 cents to $51.65.

Brent for December settlement fell 59 cents to $57.56 a barrel on the London-based ICE Futures Europe exchange, after adding 27 cents on Wednesday. The global benchmark crude was at a premium of $5.91 to WTI for the same month.

U.S. gasoline inventories expanded by 908,000 barrels last week, while distillate supplies climbed to 134.5 million barrels, according to the Energy Information Administration. Refinery utilization slipped as plants including Exxon Mobil Corp.’s Joliet refinery in Illinois were said to carry out maintenance.
more detail at:  https://www.bloomberg.com/news/articles/2017-10-18/oil-trades-near-52-as-iraq-exports-slump-after-clash-with-kurds

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