USA crude stocks fell by 8.6 million barrels in the week to September 7 to 395.9 million, the American Petroleum Institute (API) said on Tuesday.
More output by members of OPEC the Organization of Petroleum Countries was able to offset the seasonal declines by non-OPEC members, though supply from non-OPEC nations was up as well by 2.6 million barrels per day, led by the United States.
“Rising challenges in some emerging and developing economies are skewing the current global economic growth risk forecast to the downside”, OPEC said in the report.
Benchmark Brent crude was marginally higher at $79.08 a barrel after touching as high as $79.66 earlier in the day, the highest since late May, when the price broke above $80 a barrel.
Innes said the slight dips on Thursday came as rising refined product inventories, which the EIA also reported, “slightly dampened market overexuberance” as it indicated that US fuel demand may be weakening.
Supply data from the Energy Information Administration will be released later today.
Oil has risen above $80 a barrel to its highest level this year amid concerns about supplies from Iran and a fall in U.S. stockpiles.
Meanwhile, France and South Korea are shunning Iranian crude, forcing the Islamic Republic to effectively remove some oil from global markets.
U.S. crude futures were up 35 cents at $69.60 a barrel.
That price range could be “tested” as the oil market enters “a very crucial period”, the Paris-based agency said in its monthly report.
With frequent attacks on Libya’s production and falling output in Venezuela, traders are weighing up whether Opec and its allies, as well as the USA, will be able to ward off supply shortages.
No matter sturdy production and supply, oil markets are tightening, which device that a disruption in any most important producer could per chance result in a enviornment fabric affect on prices. India, along with some other countries, has sought “waivers” from Washington that would allow them to continue to import Iranian oil and avoid retaliation from the us for a certain period of time.
Top buyers China and India have already cut back purchases from Tehran, and other countries are likely to do the same between now and November.
Last month, in its August STEO, the EIA predicted that ethanol production would average 1.04 million barrels per day in both 2018 and 2019.
OPEC said the world will need 32.05 million bpd from its 15 members in 2019, unchanged from last month.
U.S. Midwest crude oil inventories fell to 105.9 million barrels last week, the lowest weekly level since January 2015, EIA data showed. The U.S. Treasury department in conjunction with the United International locations on Wednesday imposed sanctions on a number one Libyan militia chief for his attacks on necessary oil facilities in June.