After five consecutive weekly builds, nationwide crude inventories fell 8.6 million barrels in the week to February 22, compared with analysts' expectations for an increase of 2.8 million barrels. John Kilduff, founding partner at energy hedge fund Again Capital, said during an interview with the CNBC that the real critical center for crude oil in Asia and Asia demand and the economic data out of Asia has been quite poor and he is not certain that even striking a trade deal with China is going to improve that country's fortunes.
This week, the U.S. Energy Information Administration (EIA) said U.S. crude output hit a record of more than 12 million bpd, driving exports to a record 3.6 million bpd in February.
This comes after the Energy Information Administration reported USA oil-inventories declined by nearly nine million barrels last week amid a strong refining activity. Yet even with full compliance to output cuts, the majority of those (52 per cent) polled in the GIQ Survey, expect Brent crude prices to be $10 lower this year and average in the $60s a barrel range in 2019.
The weakness is being felt across the region.
Potential demand declines could offset producers' efforts to curb a global supply glut.
Meanwhile, global oil supply fell by 1.4 million b/d to 99.7 million b/d in January.
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"Crude oil prices rose sharply after data showed OPEC'sproduction cut agreement is having a big impact on imports andinventories in the U.S.", ANZ bank said on Thursday. The US has been importing less crude oil altogether-not just less OPEC crude, said the survey by Gulf Intelligence, a strategic communications & research firm effective across the full value-chain of the Middle East Energy Sector.
During the week ending November 30, 2018, the United States exported more crude oil and petroleum products than it imported for the first time in weekly data going back to 1991.