Could the API's Crude Oil Inventories Push Crude Prices Higher?

Crude Oil

Daily December West Texas Intermediate Crude Oil

Bloomberg reported that the Brent benchmark had erased earlier declines to trade marginally higher at $55.62 a barrel, after the news of the Saudi oil allocations cuts.

"Number two, to sustain this into next year, some extraordinary measures may have to be taken in order to restore this stability on a sustainable basis going forward", the top OPEC man said without elaborating on what these measures might include, although he mentioned that OPEC would welcome more participants in the production cut deal.

U.S. West Texas Intermediate (WTI) crude futures were trading at $49.65 per barrel at 0327 GMT, up 7 cents, or 0.14 percent, from their last close.

"I think the market is able to absorb that 2 million bpd of USA exports easily", said Glencore's head of oil trading Alex Beard told the Reuters Global Commodities Summit.

"We urge our friends in the shale basins of North America to take this shared responsibility with all seriousness it deserves, as one of the key lessons learnt from the current unique supply-driven cycle", Barkindo was quoted as saying by Reuters. "I don't think there are many losers out there".

Opec said the world would need 33.06 million barrels per day (bpd) of its crude next year, up 230,000 bpd from its previous forecast.

The OPEC agreement with Russian Federation and 10 other producers to take off 1.8 million bpd from the global oil market was originally supposed to last for six months, but in May this year the partners made a decision to extend it until the end of March 2018.

Opec said it pumped 32.75 million bpd in September, up about 89,000 bpd from August.

Investors are in wait-and-see mode ahead of the release of oil-market data from the Organization of the Petroleum Exporting Countries on Wednesday and the International Energy Agency on Thursday.

Haworth said the market and OPEC are "hoping United States producers slow down production and make further progress on inventory cuts".

Monroe Energy, a subsidiary of Delta Air Lines Inc, was shutting its 185,000 barrel-per-day Trainer, Pennsylvania, refinery due to a fire on Wednesday, a source familiar with the plant's operations said.

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