Oil prices extend gains

Dhaka,  Wed,  20 September 2017
Published : 12 Jul 2017, 12:25:19
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Oil prices rise on lower production outlook 

Oil prices extend gains
Oil prices on Wednesday extended gains from the previous day as the US government cut its crude production outlook for next year and as fuel inventories plunged.

Brent crude futures rose 65 cents, or 1.4 per cent to $48.17 per barrel by 0155 GMT, while US West Texas Intermediate (WTI) crude futures were at $45.77 per barrel, up 73 cents, or 1.6 per cent.

Both settled about 1.4 per cent higher on Tuesday, according to Reuters.

US crude oil inventories fell by 8.1 million barrels in the week to July 7 to 495.6 million, according to the American Petroleum Institute (API), in an indictor that a long-standing fuel supply overhang is starting to draw down.

The US Energy Information Administration said late on Tuesday that it expected 2018 crude oil output to rise to 9.9 million barrels per day (bpd) from 9.3 million bpd this year, a 570,000 bpd increase. This was down from last month's forecast 680,000 bpd year-over-year increase.

Despite the slight downward revision, US production C-OUT-T-EIA is still set to break the 9.61 million bpd record from June 2015.

At the same time, output from the OPEC remains high despite a pledge led by the producer group to cut supplies between January of this year and March 2018 in order to tighten the market and prop up prices.
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