Cushing — home to the country’s largest commercial storage hub — saw storage levels drop by 1.3 million barrels to 59.5 million barrels, down 4.6 million barrels from 64.1 million barrels one year ago.
Stocks still are up 9.2 million barrels from 493.7 million barrels one year ago.
Oil company executives have said they expected the oil price to remain relatively flat for much of the year, but many also have said they would reevaluate drilling programs at midyear based in part on price forecasts.
The motor fuel’s storage levels dropped by 3.7 million barrels in the latest report to 237.3 million barrels.
Gasoline production increased to 10.4 million barrels a day, up from 10.3 million barrels per day one week ago.
Oil price 7/7: Brent and WTI falling on oversupply frights
LONDON — The price of oil fell 1% in early trade on Friday morning, amid fears of oversupply.
Even though US stockpiles of oil are at its lowest level since January, the concerns about global over-supply are still doing the rounds.”
The gains were given up after a few hours and oil dropped to a new low of the day yesterday.
“The American Petroleum Institute (API) announced a much bigger than expected drop in inventories on Wednesday – so the EIA report wasn’t a total shock.
UK Brent is down 1.02% to $47.62 a barrel at 7.25 a.m. BST (2.25 a.m.
Oil prices to face inflation
This latest slide in oil prices, if sustained, will continue to act as a significant headwind for global inflation.
A lower oil price has made the prospect of raising interest rates increasingly difficult, which is having an effect on long-dated bond yields.
Oil prices have not fallen this much in any June month since 1988, when an eight-year war between Iran and Iraq, as key producers, was in its final stages.
Central banks globally have long been lamenting the ramp up in asset inflation (namely housing) against a backdrop of weak underlying inflation (impacting wage growth).
There appear to be a number of factors contributing to the current oil glut, most of which can be attributed to a supply side imbalance.
collected by :Jack Alex