Oil Prices Slip

By Laila Kearney
Wednesday, March 27, 2019

Oil prices edged lower on Wednesday after government data showed U.S. crude stocks unexpectedly rose last week, though disruptions to Venezuela's crude exports limited losses.

Brent crude futures lost 1 cent to $67.96 a barrel at 10:48 a.m. EST (1448 GMT). U.S. crude futures fell 24 cents to $59.70 a barrel.

U.S. crude inventories rose last week by 2.8 million barrels, compared with analysts' expectations for a decrease of 1.2 million barrels, the U.S. Energy Information Administration said.

"The report was bearish relative to expectations, as crude inventories rose due, in part, to a steep drop in exports week-on-week," said John Kilduff, a partner at Again Capital LLC in New York. "The rise in crude oil inventories at Cushing was another bearish data point."

Crude stocks at the Cushing, Oklahoma, delivery hub rose by 541,000 barrels and exports fell 506,000 barrels, the EIA said.

Venezuela's main oil export port of Jose and its four crude upgraders were unable to resume operations following a massive power blackout on Monday, the second in a month.

Crude exports from the key OPEC member have dropped sharply since Washington banned U.S. refiners from buying Venezuelan oil in January.

Oil prices have risen more than 25 percent this year, supported by supply curbs by the Organization of the Petroleum Exporting Countries and other major producers, along with U.S. sanctions on exports from Venezuela and Iran.

Disruptions in the United States have also lent support.

The U.S. Coast Guard on Monday reopened portions of the Houston Ship Channel with restrictions on waterways affected by a petrochemical leak and fire outside Houston that have disrupted ship traffic.

Crude flows from two key shale basins to the Cushing, Oklahoma delivery point for U.S. crude futures slowed in March due to winter production outages, dealers said.

Hedge funds and other money managers have increased bets that demand for oil will be sustained, even as the market rallied last week.

(Reuters, By Laila Kearney, Additional reporting by Ron Busso in London, Aaron Sheldrick in Tokyo and Koustav Samanta in Singapore; Editing by David Evans and Marguerita Choy)


Categories: Shale Oil & Gas

Related Stories

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

French Oil Major Acquires Interests in Multiple Blocks in Southeast Asia

Fugro Expands Geotechnical Testing Capabilities in Indonesia

UK Firm Secures Exploration Extension for Two Blocks off Vietnam

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

Current News

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com