U.S. crude oil inventories decrease in past week

  • U.S. crude oil inventories decrease in past week

U.S. crude oil inventories decrease in past week

Oil prices have also been supported recently by OPEC's reduced production which has fallen to an 11-month low due to the production cut agreements and production problems in Libya and Venezuela.

The West Texas Intermediate for May delivery fell 0.14 US dollar to settle at 63.37 dollars a barrel on the New York Mercantile Exchange, while Brent crude for June delivery lost 0.10 dollar to close at 68.02 dollars a barrel on the London ICE Futures Exchange.

But by the end of the session, Brent crude futures lost just 10 cents to settle at $68.02 a barrel, a 0.15 percent loss.

The West Texas Intermediate for May delivery dropped 1.93 US dollars to settle at 63.01 dollars a barrel on the New York Mercantile Exchange, while Brent crude for June delivery lost 1.70 dollars to close at 67.64 dollars a barrel on the London ICE Futures Exchange.

Prices were also helped by a turnaround in the USA stock market.

Industry group the American Petroleum Institute, however, said on Tuesday US crude stocks have unexpectedly fallen last week as refineries boosted output.

Oil prices slipped on Wednesday on expectations for a build-up in United States crude inventories, but Russian government comments on prospects for stepping up cooperation with OPEC to coordinate output cuts braked steeper declines.

Texas continues to produce more crude oil than any other state or region of the United States.

News reports that the Iraqi government has approved plans to increase the country's oil production capacity to 6.5 million barrels a day by 2022, from around 5 million barrels a day in 2019, were consistent with expectations that the country would continue to expand its output.

OPEC is seeking a long-term deal on supply quota with Russian Federation and other non-OPEC producers, said Crown Prince Muhammad Bin Salman of Saudi Arabia.

"Investors took their cue from falling U.S drilling counts", Wang Xiao, head of crude oil research with Guotai Junan Futures said.

Also potentially weighing on markets are the rising trade tensions between the USA and China.China slapped tariffs of up to 25 percent on 128 US products including frozen pork, as well as wine and certain fruits and nuts, in response to US duties on imports of aluminium and steel, the country's finance ministry said on Sunday night. Trading volumes were predicted to be likely low yesterday as many countries, especially in Europe, will still be on Easter holiday.