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Crude Oil Prices Settle Lower on Bearish Inventory Data

Published 2017-11-15, 02:37 p/m
© Reuters.
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Investing.com – Crude oil prices settled lower on Wednesday after data showed crude and gasoline supplies rose last week while production jumped to a record all-time high.

On the New York Mercantile Exchange crude futures for December delivery fell by 37 cents to settle at $55.33 a barrel, while on London's Intercontinental Exchange, Brent lost 34 cents to trade at $61.87 a barrel.

Crude oil settled lower for the third day amid ongoing concerns over rising US output and build in crude stockpiles for the second week in row.

Inventories of U.S. crude rose by roughly 1.9 million barrels for the week ended Nov. 11, missing expectations of a draw of 2.2 barrels.

Gasoline inventories – one of the products that crude is refined into – rose by 894,000 barrels, confounding expectations for a draw of 919,000 barrels while supplies of distillate – the class of fuels that includes diesel and heating oilfell by about 799,000 barrels, less than the expected decline of 1.3 million barrels.

The bearish data on refinery products such as gasoline and distillate come against the backdrop of an uptick in refinery activity as heating oil season gets underway.

Rising crude output, meanwhile, continued as preliminary U.S. production figures showed weekly output rose by 25,000 to an all-time high of 9.65 million barrels per day, the EIA said.

The uptick in US crude production added to recent fears that US producers are set to ramp up output after the IEA said on Tuesday that it expected global crude markets to remain oversupplied through the second quarter of 2018 amid an uptick in U.S. production.

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