Oil Erases Losses, API Said to Report U.S. Crude Stockpile Drop

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Oil erased losses after an industry report was said to show U.S. crude stockpiles unexpectedly fell last week.

Inventories declined by 531,000 barrels last week, according to an American Petroleum Institute report Tuesday, people familiar with the data said. Analysts surveyed by Bloomberg said stockpiles probably increased by 3.13 million barrels last week ahead of an Energy Information Administration report on Wednesday. A draw in crude inventories would be the first decline since December when compared with EIA data. Saudi Arabia raised its production back above 10 million barrels a day, yet OPEC’s largest producer was said to have put its extra February oil output into domestic storage. Oil broke below the $50-a-barrel level last week for the first time since December as rising U.S. crude inventories and output counteracted reductions by the members of the Organization of Petroleum Exporting Countries and 11 other nations as part of a deal to help re-balance the market. Saudi Arabia is determined to stabilize the global oil market, the Saudi Arabian Energy Ministry said in a statement Tuesday. That follows previous comments during CERAWeek from Energy Minister Khalid Al-Falih that the kingdom won’t indefinitely “bear the burden of free riders.” …

Read more : Bloomberg, 13.03.2017