Oil prices down on United States gasoline level shocker


US crude stockpiles probably declined by 2.5 million barrels last week, according to the median estimate in a Bloomberg survey before an Energy Information Administration report scheduled to be released on Wednesday.

Rainwater from Hurricane Harvey surrounds oil refinery storage tanks in this aerial photograph taken above Texas City, Texas, U.S., on Wednesday, Aug. 30, 2017.

Crude oil prices lost ground early Wednesday on a build in USA gasoline supplies, an indication of lower demand, and fears about the global economy.

Week over week, US crude oil exports slipped by 54,000 barrels a day last week and USA production rose by 25,000 barrels a day.

Tuesday evening the American Petroleum Institute (API) reported that crude inventories fell by 5.5 million barrels in the week ending December 1.

Distillate inventories also saw a build this week, rising 4.259-million barrels, against a forecast of a 548,000-barrel build.

United States gasoline demand fell by 871,000 bpd (barrels per day) or 9% to 8,724,000 bpd on November 17-24, according to the EIA.

Brent crude, the global benchmark, was down 0.62% at $62.47 a barrel on London's Intercontinental Exchange.

Crude stocks at the Cushing, Oklahoma, delivery hub fell by 2.8 million barrels, EIA said. Traders were looking for a draw of about 3.5 million barrels.

Meanwhile, West Texas Intermediate (WTI) crude lost 0.42 per cent to Dollars 57.38, while Brent crude, the European benchmark, fell 0.38 per cent to USD 62.62 a barrel at the New York Mercantile Exchange today. That price is near unchanged levels on the trading day. Over the past 12 months, Exxon stock has traded down about 5.1%.

The accord was first struck a year ago with the aim of draining the global oil glut and boosting prices.