Oil prices steady as US crude inventories fall
london — Oil prices steadied on Friday as a rise in stocks of refined petroleum products offset a big fall in US crude inventories to the lowest level since 2015.
Brent crude futures edged down 10¢ to $76.40 a barrel by 0917GMT. US West Texas Intermediate (WTI) crude futures lost 3¢ at $67.74 per barrel.
US commercial crude oil inventories fell by 4.3 million barrels to 401.49 million barrels in the week to August 31, the lowest since February 2015, US Energy Information Administration (EIA) data showed on Thursday.
But sentiment suffered due to a rise in refined product stocks coupled with relatively weak demand for fuel during this summer’s US driving season — when consumption normally peaks.
Gasoline stocks rose by 1.8 million barrels, while distillate stockpiles, which include diesel and heating oil, climbed by 3.1 million barrels, the EIA said.
“[Gasoline] stocks... are now 3.5 per cent above the year-ago level. More worryingly, the surplus to the five-year norm now stands at 5.4 per cent, the highest since June 2017,” Stephen Brennock of London brokerage PVM said.
“This bears all the hallmarks of a disappointing summer driving season. As a result, the alarm bells are now ringing that a gasoline glut will persist for the foreseeable future,” he added.
On the supply side, US crude oil production last week remained at a record 11 million barrels per day, a level it has largely been at since July. —