Crude Oil Price Ticks Up Following EIA Inventory Report

US Hurricanes Affecting Oil Prices, Saudi Could Cut Output

Hurricanes Harvey and Irma to support crude oil prices; buy on dips

EIA said it was too early to assess the impact of Hurricane Irma, which made landfall on September 10.

Earlier on Wednesday the International Energy Agency said global oil supplies fell for the first time in four months in August, while also revising its 2017 oil demand estimate up to 1.6 million barrels a day from its July estimate of 1.5 million.

Some bearish investors are saying the OPEC data was not a true assessment of production because the numbers were lowered by unrest in Libya which contributed the country's 112,300-barrel decline in August's production.

According to China's official customs data, the last crude exports to North Korea were in December 2013 at 92,223 tonnes with a total of 578,002 mt (4.24 million barrels) exported to the country that year.

Owing to the impact of Harvey, US crude inventories rose by 4.6 million barrels while gasoline stocks fell by 3.2 million barrels last week.

US gasoline prices, however, fell despite a record drawdown in inventories of the motor fuel.

Before the EIA report, benchmark West Texas Intermediate (WTI) crude for October delivery traded up about 1.1% at around $48.74 a barrel, and it traded at $47.78 shortly after the report's release.

OPEC and other producers, including Russian Federation, have agreed to reduce output by about 1.8 million barrels per day until next March in a bid to reduce global oil inventories and support oil prices. USA crude exports fell to 6.5 million bpd, the lowest since 2014, when crude export restrictions were first relaxed.

He added that oil exports are expected to reach up to 2.5 million bpd within five years. While the largest US refinery, Motiva Port Arthur, and a number of others were restarting more than two weeks after Hurricane Harvey ripped through the US Gulf coast, the impact from Irma was less supportive of oil prices.

A fall in production from Saudi Arabia is bullish for crude oil (FENY) (IXC) (IYE) prices. "There is a need to consider how we place our stocks, where we place our stocks and the combination of crude oil versus products is an issue that we need to pay attention to", he said when asked if the United States should reconsider moving its fuel stocks.

Gasoline stocks fell by 8.4 million barrels, compared with analysts' expectations in a Reuters poll for a 2.1 million-barrel drop.

OPEC members are discussing prolonging the cuts ahead of a ministerial meeting scheduled for late November in Vienna, with a three-month extension seen as the minimum, the people said.

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