United States oil rig count little changed amid drawdown of inventories, record production

United States oil rig count little changed amid drawdown of inventories, record production

Russia's largest oil producer Rosneft has been able to recover its oil production of 70,000 barrels per day (bpd) in just two days, as it tested the possibility of global output curbs easing, Renaissance Capital wrote in a client note.

West Texas Intermediate for July delivery traded at $66.99 a barrel on the New York Mercantile Exchange, down $1.58, at 9:16 a.m.in New York.

For the week, WTI was on track for a 2.1 percent fall, adding to last week's near 5 percent decline and shrugging off a 3.6-million-barrel drop in US crude stockpiles last week.

Net U.S. crude imports fell last week by 959,000 bpd as exports jumped 431,000 bpd to 2.2 million bpd.

At 434.5 million barrels, USA crude oil inventories are in the lower half of the average range for this time of year.

On Thursday, the premium for Brent over WTI surpassed $11 a barrel, the largest since early 2015. It was set for a 0.4 per cent gain for the week.

The trading sentiment dampened in futures trade after oil lost more ground on pressure from record USA production and expectations of higher OPEC output, analysts said.

WTI light sweet oil was down 57 cents at USD66.66 a barrel, extending this week's losses.

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The American petroleum Institute (API) on Wednesday reported that the volume of oil reserves in the US last week rose 1 million barrels and distillates by 1.5 million barrels, while gasoline inventories decreased by 1.7 million barrels.

The premium doubled in about a month as a lack of pipeline capacity in the USA traps much of the output inland.

US President Donald Trump also urged Opec to increase production which both Kapadia and Kelty believe had an important impact on driving prices down.

"Until transportation is incentivized to get crude to the coasts or production is shut in, "we're going to continue to see some weakness in WTI", Smith said". According to services group, Baker Hughes, another 2 rigs were activated last week to look for oil in the USA, taking the figure to 861 last week, the highest for more than three years. It was the eighth increase in nine weeks.

The speculator group cut its combined futures and options position in NY and London by 50,937 contracts to 370,980 during the week to May 29, the U.S. Commodity Futures Trading Commission said.

Russia could raise oil output within months if there is a decision to unwind the agreement, a Russian Energy Ministry official said.

Venezuela, whose output has plunged due to an economic crisis, told OPEC its production fell to 1.505 million bpd in April, believed to be the lowest in decades.

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