United States crude inventories seen rising for second week

United States crude inventories seen rising for second week

The United States is now the biggest consumer of oil in the world.

Gulf Coast terminals handle three-quarters of US crude exports, but only one - the Louisiana Offshore Oil Port (LOOP) terminal - can handle supertankers that can carry up to 2 million barrels of oil.

Crude oil futures fell Rs 19 to Rs 4,081 per barrel today as speculators reduced their positions amid a weakening trend overseas.

The IEA sees U.S. output even higher at 10.40 mbpd in 2018.

"The market is strongly reacting to the higher-than-expected surge in USA oil production, which has depressed investor sentiment", Kim Kwangrae, a commodities analyst at Samsung Futures, said by phone from Seoul.

This has led to a sharp increase in the amount of petroleum that America sells overseas. It's hard to believe Iran has the resources to add another 100,000 bpd in just a few days.

Analysts surveyed by S&P Global Platts had expected a 2.8-million-barrel rise in crude stocks. For the same period, analysts polled had consensus estimates for an increase of 3.19 million barrels in crude inventories, a rise of about 460,000 barrels in gasoline and a decrease of 1.42 million barrels in distillate stockpiles.

Terminals conceived for importing liquefied natural gas have now been overhauled to allow exports.

Domestic crude production hit 10.25 million barrels for the most recent week, which would exceed the all-time US monthly record of 10.044 million barrels a day, set in 1970.

And this new record, expected within days, likely won't last long.

In November, oil production surpassed 10 million bpd for the first time since 1970, and neared the all-time output record.

Market observers and analysts argue that US energy stocks are in a position to outperform broader equity markets this year, even if oil prices don't move higher.

Fears of dire energy shortages that gripped the country in the 1970s have been replaced by a presidential policy of global 'energy dominance'.

The cargo will be used to meet requirements for its condensate splitters, the person said, adding that it preferred to buy the oil from the U.S. because it has superior quality to that sourced from the region. Now American oil has flowed to the Middle East, and more specifically the UAE. West Texas Intermediate, the USA benchmark for the price of oil, was down 1.2 percent to $63.38 per barrel.

The agency also raised its forecasts for production. JP Morgan also predicted a higher oil price in the coming months. Exports will continue to grow because of slowing domestic demand and the start-up of new refining facilities, it said.

Saudi Arabia cut output a year ago as part of OPEC's 2016 deal to reduce supply - after losing a price war with USA shale producers that created a global glut.

Shale producers won the price war through aggressive cost-cutting and rapid advances in drilling technology. This is 1.74% below the closing level of the previous trading session.

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