Oil steady as ten­sion in Mid East in­creases

Yorkshire Post - Business - - MARKET REPORT -

OIL PRICES were lit­tle changed on Wed­nes­day as ris­ing po­lit­i­cal ten­sions in the Mid­dle East off­set US govern­ment data show­ing an in­crease in do­mes­tic crude pro­duc­tion and a sur­prise build in stock­piles.

US crude pro­duc­tion rose to 9.6 mil­lion bar­rels per day dur­ing the week of Novem­ber 3, the most in a week on record ac­cord­ing to the En­ergy In­for­ma­tion Ad­min­is­tra­tion (EIA) data go­ing back to 1983.

“The most no­table thing in the EIA re­port was that pro­duc­tion in­creased. We’re on our way to set record crude oil pro­duc­tion in 2018,” said An­drew Lipow, pres­i­dent of Lipow Oil As­so­ciates in Hous­ton.

The EIA also said crude stocks in­creased by 2.2 mil­lion bar­rels. That com­pared with the 2.9 mil­lion-bar­rel draw fore­cast by an­a­lysts in a Reuters poll and the 1.6 mil­lion-bar­rel de­cline re­ported late Tues­day by the Amer­i­can Petroleum In­sti­tute.

Brent fu­tures were down 4 cents, or 0.1 per cent, at $63.65 a bar­rel, while US West Texas In­ter­me­di­ate crude was down 16 cents, or 0.3 per­cent, at $57.04 per bar­rel. Be­fore the EIA re­leased the in­ven­tory data, Brent and WTI fu­tures were down about 0.6 per cent on data that showed Chi­nese crude im­ports fell to a one-year low.

China’s Oc­to­ber oil im­ports fell to just 7.3 mil­lion bpd from a near record-high of about 9 mil­lion bpd in Septem­ber.

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