09.03.2016 16:40 Oil again demonstrates the positive trend
Oil prices jumped more than 3%, returning to recent highs, helped by data on stocks of petroleum products in the United States, which convinced the market that the demand for gasoline is gradually improving. Oil also got support from speculation that the top oil producers may agree to freeze production in the near future.
US Department of Energy reported that in the week of February 27 - March 4 oil stocks rose 3.88 million barrels to 521.9 million barrels, a record high for this time of year. Analysts had expected an increase of 3.5 mln. Barrels. Oil reserves in Cushing terminal rose 690,000 barrels to a record 66.9 million barrels. Meanwhile, gasoline stocks fell by 4.5 million barrels to 250.5 million barrels. Analysts had expected stocks to fall 1.5 million barrels. Distillate stocks fell by 1.1 million barrels to 162.5 million barrels. Analysts had forecast a drop to 500,000 barrels. The utilization of refining capacity increased by 0.8% to 89.1%. Analysts have suggested that the rate will fall to 0.3%. US oil production in the week 27 February-4 was 9.078 million. Barrels per day versus 9.077 million. Barrels the previous week. Oil imports in the US fell by 0.244 million. barrels per day to 8.048 million. barrels per day.
Yesterday a report on petroleum products provided the American Petroleum Institute. The data showed that for the week ending March 4, US crude stocks rose 4.4 million barrels. Oil reserves in Cushing terminal rose 692,000 barrels. Gasoline stocks rose by 2.124 million barrels, while distillate stocks to 0.128 million barrels.
In the course of trading is also affected by news that the US Energy Information Administration (EIA) lowered forecasts for US growth of world oil consumption and production this year. In its monthly report, EIA has lowered the forecast for consumption growth in the world in 2016 to 90 000 barrels per day to 1.15 million, and the forecast for 2017 - by 250,000 barrels per day to 1.21 million. Management reduced the growth forecast for oil demand in the US this year, up to 80,000 barrels per day to 110,000 barrels, which it predicted in February. The forecast has been lowered to 160 000 barrels per day in 2017 to 260 000. the EIA doubled the forecast for the US decline in oil production in 2017 - up to 480,000 barrels per day in February with a projected 230 000. According to the new forecast, production will drop to 8 19 million barrels per day.
WTI for delivery in April fell to $37.95 a barrel. Brent for April fell to $41.00 a barrel.