Crude oil rates drifted lower on Thursday, after International Energy Agency’s report stated worldwide oil supply reached a record high in August.
Inning accordance with the report from IEA, global oil supply reached a record 100 million barrels per day in August, with output from OPEC nations and Russia increasing to a nine-month high.
The dive in production to 32.63 million barrels daily, was due mostly to greater output from Libya, Iraq, Nigeria and Saudi Arabia, stated the report from IEA. Greater production in the United States, raised supply from non-OPEC countries by 2.6 million barrels per day, the report showed.
Nevertheless, the agency said that production may drop moving forward due to falling output from Iran and Venezuela.
It is still feared that hurricane Florence, which is headed towards South and North Carolina might cause flooding and power interruptions. It is hoped that there will not be a substantial supply shortage. Crude oil futures for October ended down $1.78, or 2.5%, at $68.59 a barrel on the New york city Mercantile Exchange. On Wednesday, petroleum futures ended up $1.12, or 1.6%, at $70.37 a barrel, the best settlement price in about 8 weeks.
Data from U.S. Energy Info Administration that showed a noteworthy drop in unrefined inventories in the U.S., and fears about the effect of hurricane Florence on oil products lifted crude oil futures on Wednesday.
Inning accordance with the weekly report launched by the U.S. Energy Info Administration, petroleum inventories come by 5.296 million barrels in the week ended September 7, much more than exactly what experts had anticipated. Products at Cushing, Oklahoma, were down by 1.242 million barrels last week, the EIA report exposed.
The report said that the overall U.S. crude oil stocks as of recently, at 396.2 million barrels, had to do with 3% listed below the 5 year average for this time of the year.
The material has been supplied by InstaForex Company – www.instaforex.com