Published: Fri, September 15, 2017
Economy | By Melissa Porter

Crude oil just hit $50 for the first time in 5 weeks

Crude oil just hit $50 for the first time in 5 weeks

Gold and most commodity prices are lower.

Brent crude prices have steadied above $55 a barrel after gaining ground yesterday on a report by the International Energy Agency (IEA) that predicted stronger demand for oil.

"We are prepared for any action that will help the stability of the oil market", Zanganeh said.

It was said that the gasoline stocks fell by 8.4 million barrels over the past week.

Crude oil inventories rose by a smaller-than-expected 5.9 million barrels in the September 8 week to 468.2 million, 2.5 percent below their level a year ago, the Energy Information Administration (EIA) said in its weekly report Wednesday. Still, on a net basis, US crude inventory builds could grow to record levels with smaller production draws in the coming week, Goldman Sachs said.

Oil supply from outside of OPEC is expected to grow by 780,000 b/d in 2017, unchanged from last month's report, to 57.8 million b/d. As a result of Hurricane Harvey, many refineries in the region either reduced runs or shut down in its aftermath.

"We expect crude prices to be stuck in somewhat of a holding pattern until we have Gulf Coast refineries brought back to full capacity".

Global crude oil prices improved, as OPEC and non-OPEC countries continued to conform to voluntary output adjustments and United States stocks declined further, OPEC said.

The prominent financial institution, Goldman Sachs also warned that the oil demand may dwindle down and fall to an expected 900,000 barrels per day by September and a whopping 300,000 barrels per day in October after the continued Hurricane attacks.

The IEA also predicted that impact of Hurricane Harvey on global oil markets is "likely to be relatively short-lived", with local stockpiles at "comfortable" levels before the storm hit, and releases from government reserves and European imports stemming any shortage.

USA crude oil was trading at $49.27 a barrel by 04:11 AM ET (08:11 GMT) after a 2.07% gain in the previous session. The American Petroleum Institute had reported late Tuesday ( an increase of 6.2 million barrels. OPEC and IEA think increased production in both Canada and Kazakhstan will offset most of the production losses in the US.

Crude palm oil prices advanced by 0.53 per cent to Rs 550 per 10 kg in futures trading today driven by strong demand in spot markets.

The assessment echoed a report by OPEC forecasting higher demand for its in 2018 and pointing to signs of a tighter market.

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