27 July, 2017
Still, the decline fell short of the 10.2 million barrel draw that the American Petroleum Institute reported Tuesday, and oil's gains were slippery: USA crude futures rose as high as $48.87 before pulling back. The number of oil rigs fell last week, oilfield services giants Schlumberger (SLB) and Halliburton (HAL) see more cooling, and on Monday, Anadarko Petroleum (APC) said it would cut its 2017 capital spending outlook by $300 million, becoming the first US producer to do so. Gasoline stockpiles also fell by 1 million barrels, while distillate stockpiles lost 1.9 million barrels last week, according to the EIA.
The global oil price benchmark rose 1.27 per cent to $50.84 per barrel while West Texas Intermediate (WTI) oil prices, the benchmark for the United States, were trading 1.52 per cent higher at $48.62 per barrel.
Sizeable inventory draws have helped underpin confidence in the oil markets with prices challenging 7-week highs, although volatility has increased.
LOOP LLC (LOOP) - operator of of the largest privately-owned crude oil storage and transportation logistics facility in the U.S. Last week, OPEC formally agreed to extend the current deal to cut oil production by 1.8 million barrels per day until March 2018.
Chinese crude oil imports are expected to exceed 400 million tons this year, and to further rise next year, Zhang Haichao, vice president of Sinopec Group, told Reuters on Tuesday.More news: Taiwan market: Motorola launches Moto Z2 Play
The EIA noted in a new report Tuesday that producers map out their oil-drilling plans based on cash flow. "Nevertheless, the country's crude and gasoline stockpiles remain above their five-year averages, which will cap price gains".
USA crude imports fell last week by 254,000 barrels per day.
At the beginning of this year, analysts predicted in a Platts outlook for 2017 that at an average barrel price of US$55 this year, Chinese crude oil production would continue to drop, by around 5 percent compared to last year.
Still, many analysts and investors believe the oil-price recovery is still tentative.