MTECHTIPS;-Crude Oil Prices Settle Below $50 Despite Large Fall in

MTECHTIPS;-Crude Oil Prices Settle Below $50 Despite Large Fall in Crude Stockpiles

MTECHTIPS-Crude oil prices settled lower on Wednesday as data showing U.S. crude oil stockpiles fell for the second straight week was offset by a sharp uptick in exports which could dampen Opec’s efforts to reduce supply. On the New York Mercantile Exchange crude futures for November delivery fell by 44 cents to settle at $49.98 a barrel, while on London’s Intercontinental Exchange, Brent lost 19 cents to trade at $55.81 a barrel. Inventories of U.S. crude fell by roughly 6 m barrels in the week ended Sept. 29, handily beating expectations of a draw of 756,000 barrels. Gasoline inventories, one of the products that crude is refined into, rose by roughly 1.6 barrels, missing expectations of a draw of 1.1 m barrels while distillate stockpiles fell by 2.6 barrels, topping expectations of a decline of 1.8 m barrels. The draw to crude stockpiles comes against a backdrop of surge in U.S. crude oil exports to 1.98 m barrels a day as the wide spread between Brent and crude oil prices continued to drive demand for U.S. crude oil. Some analysts, however, suggested that the surge in U.S. crude exports could undermine Opec and other major oil producers’ efforts to curb output. “The U.S. oil-production profile has forced OPEC and some non-OPEC countries participating in the ongoing output-cap agreement to re-evaluate their strategy,” said senior energy analyst at Interfax Energys Global Gas Analytics in London

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