En Español

Very usefull links


News links




Dow Jones

Oil price



Views and News





Oil prices climb Tuesday as traders eye another U.S. crude drawdown

By Devika Krishna Kumar

Petroleumworld 08 22 2017

Oil inched up on Tuesday, lifted by expectations of another crude stockpile drawdown in the United States but price gains were limited amid the reopening of Libya's largest oil field.

U.S. crude inventories were expected to have fallen for an eighth straight week and dropped 3.4 million barrels last week, a Reuters poll showed, ahead of weekly data.

Libya's Sharara oil field was gradually reopening after its latest shutdown, field workers said. Earlier in the day an oil official said it was shut again hours after reopening on Tuesday following a three-day pipeline blockade.

Sharara, which has been pumping up to 280,000 barrels per day (bpd) in recent weeks, has been affected by repeated shutdowns because of protests by armed groups and oil workers.

Brent crude LCOc1 rose 36 cents, or 0.7 percent, at $52.02 a barrel by 12:33 p.m. EDT (1633 GMT).

Book-squaring ahead of the U.S. crude September contract's expiry on Tuesday added to price gains, traders and brokers said.

U.S. crude futures for September delivery CLc1CLU7 was 36 cents higher at $47.73 while the more active October contract CLc2 was up 42 cents at $47.95.

U.S. gasoline futures RBc1 also led the complex higher and were up 0.7 percent as forecasts for heavy rain associated with the remnants of former tropical storm Harvey threatened to cause refinery flooding, traders said.

A tropical depression is expected to form over the southwestern Gulf of Mexico on Wednesday or Thursday.

"Traders of crude oil and gasoline will also have particular interest in the remnants of Tropical Storm Harvey expected to strengthen to Category 1 hurricane status as it crosses the Gulf of Mexico toward a possible Friday landfall on the Texas Coast," Tim Evans, Citi Futures' energy futures specialist, said in a note.

"While not a major storm, this will at least serve as a drill for refiners along the coast, in our view."

The Organization of the Petroleum Exporting Countries and non-OPEC producers including Russia have pledged to hold back about 1.8 million barrels per day (bpd) of output between January this year and March 2018 in order to tighten supplies and prop up prices.

Meanwhile, U.S. crude production has broken through 9.5 million bpd, its highest since July 2015. C-OUT-T-EIA

Some analysts say U.S. oil output growth will slow as energy firms cut the number of rigs drilling for oil. RIG-OL-USA-BHI

Still U.S. commercial crude inventories have fallen by almost 13 percent from their March peaks, to 466.5 million barrels as refineries have continually processed record amounts of oil. C-STK-T-EIA

"Another decline in U.S. crude stocks may push prices somewhat higher again, but the upside may be limited - especially if U.S. crude production ticks higher again," said Hans van Cleef, energy economist at ABN AMRO.

Industry group the American Petroleum Institute will publish statistics on inventories for last week at 4:30 p.m. EDT (2030 GMT), followed by official government data on Wednesday. [API/S][EIA/S]

Story by Devika Krishna Kumar; Additional reporting by Christopher Johnson in London, Henning Gloystein and Aaron Sheldrick in Singapore; Editing by Marguerita Choy and Louise Heavens from Reuters.

08 22 2017
10:00AM EDT

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels


Sept. 14-15,
Accra, Ghana


Nov 13-14 ;
Mexico City, Mexico









Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld   / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.