Surge in US output halts oil price rally
The internationally traded Brent halted gains above $52 a barrel as investors weigh a rebound in US output against declining crude and gasoline stockpiles.
Its rally has stalled at $52.11 a barrel in early Thursday trading.
The EIA inventory data for the US show crude at -1.53m bbl, gasoline -2.52m bbl, distillates -0.15m bbl. Crude production rose 20kbd with refinery utilization rate rising 1.1% to 95.4%.
Oil imports from both Saudi and Iraqi also increased according to date by Goldman Sachs.
Oil market’s hidden signals show US producers hedging again. Demand for the contracts that producers use to guarantee price levels soared after 2018 WTI crude returned to $50 a barrel. At the same time a raft of trades were reported to US regulators last week that showed some producers hedging at levels as low as $45 a barrel, according to data compiled by Bloomberg.
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