On Thursday, the increase in US crude stocks dragged down the oil prices. However, prices remained to have a place even if the Venezuelan output trim the tightened output of global supplies.
From the last trading in the International benchmark, down of 50 cents, Brent futures were at $71.23 a barrel.
Crude oil futures for US West Texas Intermediate were below 54 cents at $64.07 per barrel.
On Wednesday, the Energy Information Administration said, 7 million barrels of US crude inventories grew in the past high of 17 months with a total of 456.6 million barrels last week.
The United States being the world’s biggest oil producer, production of U.S. crude oil persisted at a record of 12.2 million barrels per day advancing against Russia and Saudi Arabia.
A Vienna-based consultancy JBC Energy said, “While U.S. crude stocks built last week, a massive draw on gasoline inventories likely buoyed the whole complex.”
On Wednesday’s last trading, the Reformulated Gasoline Blendstock for Oxygen Blending was higher by 3.5 percent while US gasoline stocks slumped a huge 7.7 million barrels.
Further price losses were kept due to the tightening of global oil supplies.
The International Energy Agency said on Thursday, the OPEC member Venezuela’s crude output was pushed by the U.S. sanctions and power outages to a long-term low of 870,000 bpd.
The energy policies of developed nations that are coordinated with an agency saw the fall of 21.7 million barrels of oil stocks in industrialized countries, hitting 16 million barrels of inventories above their five-year average in February.
Head of Commodity at Saxo Bank stated, “as long as Saudi Arabia continues to back the production cut deal as aggressively as it has done so far,” referring to the continues oil market tightening.
Future demands a full attention during the rise of alternative transport fuels is needed, beyond the short-term outlook for oil markets.
Bernstein Energy said in a note, “We believe global demand has another 10 million bpd of growth, with over half from China.”
An anticipated output of around 100 million bpd for the current oil demand stands.
Peak expectations of oil demand is around 2030 as Bernstein said.
Bernstein stated, “While no industry lasts forever, the age of oil is far from over.”
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