MTECHTIPS:-Crude futures settle lower despite surprise dip in U.S.
MTECHTIPS:-Crude futures settle lower despite surprise dip in U.S. crude stockpiles
MTECHTIPS-Crude futures settled lower on Wednesday, after the latest Energy Information Administration (EIA) report showed an unexpected drop in U.S. crude stockpiles from record highs while production increased. On the New York Mercantile Exchange crude futures for May delivery fell by 29 cents to settle at $53.11 a barrel, while on London’s Intercontinental Exchange, Brent lost 30 cents to 56.65 a barrel. Oil prices spiked to the upside, after the headline U.S. crude inventories number revealed an unexpected draw but gains were short lived, as investors shifted focus to the uptick in Cushing crude production, which rose 276,00 barrels in the week. For the week ending April 5, The EIA said that crude oil inventories fell by 2.166 million barrels compared to estimates of an increase of 0.087 million barrels. Gasoline production grew by 0.412 million against expectations for a drop of 0.513 million barrels while distillate stockpiles fell by 2.153 million barrels, compared to expectations of a 0.885 million decline. The surprise dip in U.S. crude stockpiles came after the Organization of the Petroleum Exporting Countries’ (OPEC) new monthly report on Wednesday, revealed its members cut oil output in March more than anticipated. Compliance with the global deal to drain the glut in supply, averaged 104% according to production figures published by OPEC. Some market participants expected oil prices to trend higher, buoyed by the high level of compliance from OPEC members with the deal to cut global supply
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