Quotes of oil rose by almost 2% on Wednesday after Saudi Arabia said it would reduce oil exports and provide an even more significant reduction in its production. Statements of Saudi Arabia also leveled the negative from the data on stocks of petroleum products in the United States, which reflected a stronger than expected increase in oil reserves.
The US Department of Energy reported that during the week of February 2-8, oil reserves rose by 3.633 million barrels, to 450.8 million barrels. Analysts had expected an increase in stocks of 2.3 million barrels. Oil reserves in the Cushing terminal decreased by 1 million barrels to 41.6 million barrels. Gasoline inventories increased by 408,000 barrels to 258.3 million barrels, while analysts had expected growth of 700,000 barrels. Distillate stocks rose by 1.2 million barrels, to 140.2 million barrels. A decrease of 1.6 million was predicted. The load on refining capacity fell by 4.8% to 85.9%. Analysts had expected a decline of only 0.9%. Meanwhile, oil production in the United States did not change last week, and amounted to 11, Oil production in the United States is expected to grow by 1.45 million barrels per day this year and by another 790,000 barrels per day next year, to 13 million barrels per day, according to EIA forecasts. http://elitetrader.ru/index.php?newsid=438625
Crude oil prices could plunge lower
Saudi Arabia has restored half of the crude product that was lost to devastating attacks on its oil industry, and the kingdom said output will be fully restored by the end of this month.
If we don’t see any new drone attackS on Saudi oil infrastructure we could see Crude oil prices going even lower. Before the oil attacks against Saudi oil infrastructure, the Crude oil prices were already heading lower.