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Crude Oil Prices Under Pressure But Remain Near Recent Highs

Published 2017-11-02, 10:04 a/m
© Reuters. Crude prices still slightly lower but downside seen limited
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Investing.com - Crude oil prices were under pressure on Thursday, weighed by a rise in U.S. crude exports, although optimism over a rebalancing of the market kept the commodity near recent highs.

The U.S. West Texas Intermediate crude December contract was down 8 cents or about 0.18% at $54.20 a barrel by 10:00 a.m. ET (12:00 GMT),just off Wednesday's 10-month peak of $55.22.

Elsewhere, Brent oil for January delivery on the ICE Futures Exchange in London was down 27 cents or about 0.45% at $60.21 a barrel, still close to the previous session's two-year high of $61.70.

Data on Wednesday showed that U.S. oil production grew by 46,000 barrels a day (bpd) to 9.55 million bpd, not far off the June 5, 2015 record high of 9.61 million, while weekly U.S. crude oil exports rose to an all-time high of 2.13 million barrels per day.

The ongoing surge in U.S. crude exports comes as the widening spread between WTI crude and Brent oil prices continued to increase international demand for cheaper U.S. crude.

The uptick in production overshadowed a mixed report from the Energy Information Administration showing crude and gasoline stockpiles declined more than expected, while distillate fell less-than-expected.

U.S. crude inventories fell by roughly 2.4 million barrels in the week ended Oct. 27, a steeper decline than the 1.8 million barrels expected.

Crude prices have been supported recently by expectations for an extension of the Organization of the Petroleum Exporting Countries' output-cut agreement.

OPEC Secretary General Mohammad Barkindo noted last week comments from both Saudi Arabian Crown Prince Mohammed bin Salman and Russian President Vladimir Putin that suggested they were in favor of a nine-month extension for the current deal to cut production by 1.8 million barrels a day.

Elsewhere, gasoline futures were up 0.14% at $1.746 a gallon, while natural gas futures gained 0.83% to $2.923 per million British thermal units.

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