Oil Trades Near $50 as U.S. Exports Soar, Putin Comments on Cuts

Futures added 0.4 percent after settling at a two-week low on Wednesday. Overseas shipments from the U.S. jumped to a record last week as production rose, government data showed. In Russia, President Vladimir Putin said he’s open to prolonging a deal with OPEC to curb supplies, though a decision won’t be made until the current agreement nears expiry in March. Saudi King Salman bin Abdulaziz began a four-day visit to the nation on Wednesday.

“U.S. production is almost at a record-high level, and exports are record-high,” said Michael Poulsen, an analyst at Global Risk Management Ltd. “As this U.S. production is a fundamental part of the oil market, such news weighs heavily.”

West Texas Intermediate for November delivery rose 21 cents to $50.19 a barrel as of 10:13 a.m. London time. Total volume traded was about 35 percent below the 100-day average. Prices fell 44 cents, or 0.9 percent, to $49.98 on Wednesday.

Brent for December settlement gained 40 cents to $56.20 a barrel on the London-based ICE Futures Europe exchange, after declining 20 cents on Wednesday. The global benchmark crude traded at a premium of $5.70 to December WTI.

Lower demand from U.S. Gulf Coast refiners that are still recovering from Hurricane Harvey in August has caused crude sellers to seek markets abroad, triggering shipments of 1.98 million barrels a day, the highest level in weekly government data compiled since 1993. The figure was about a third higher than the previous record, set the prior week.
more at:  https://www.bloomberg.com/news/articles/2017-10-04/crude-oil-extends-drop-below-50-amid-record-shipments-from-u-s