Oil prices down on USA gasoline level shocker

Crude Oil Prices Mostly Steady After China Trade Figures, US Rig Count Eyed

Crude Oil Prices Mostly Steady After China Trade Figures, US Rig Count Eyed

"If you extend the production-cut agreement through the end of 2018, that surplus will basically erode away, which will be a good thing for oil prices in the long-term", Rob Thummel, managing director at Tortoise Capital Advisors LLC, which handles $16 billion in energy-related assets, said in a Bloomberg Television interview.

Information released Wednesday by the Energy Information Administration showed USA crude oil inventories decreased by 5.6 million barrels last week. Goldman Sachs Group Inc. forecast that oil prices will retain strength at least through next year.

"We were overdue a little bit of profit-taking and the build up in gasoline inventories was the ideal excuse to do just that", said Michael Hewson, chief market analyst at brokerage CMC Markets.

Brent crude, the global benchmark, was down 0.62% at $62.47 a barrel on London's Intercontinental Exchange. MCX Crude oil futures are also down 1.56% to trade at Rs 3666 per barrel. The cartel's output dropped last month to the lowest in half a year. An extension was largely priced in by the market and prices have reacted tepidly to the official decision.

The United States Oil ETF (NYSEARCA: USO) traded down about 1.5%, at $11.37 in a 52-week range of $8.65 to $12.00. Prices rose 15 cents to $57.62 on Tuesday. But if prices top their hedged positions, that could push US producers into more drilling.

The U.S. Energy Information Administration report on oil inventories is due to be released on Wednesday at 10:30 a.m. EDT. Nationwide crude stockpiles declined, according to the API data.

Week over week, US crude oil exports slipped by 54,000 barrels a day last week and USA production rose by 25,000 barrels a day. ICE gasoil, a benchmark for diesel fuel, changed hands at $554.75 a metric ton, down 0.31% from the previous settlement.

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