Published: Fri, October 13, 2017
Money | By Armando Alvarado

Oil slips, despite larger draw in U.S. stocks

Oil slips, despite larger draw in U.S. stocks

The agency also raised its crude oil price outlook for both West Texas and Brent oil this year and next. For 2018, oil demand is expected to rise by 420,000 bpd vs 400,000 bpd previously.

Crude oil prices moved lower on Thursday, after data late Wednesday showed that inventories rose unexpectedly last week, eclipsing recent signs that the market is tigthtening, while markets awaited the U.S. Energy Information Administration's weekly report due later in the day.

The West Texas Intermediate for November delivery decreased 0.70 US dollar to settle at 50.60 dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery lost 0.69 dollar to close at 56.25 dollars a barrel on the London ICE Futures Exchange. Distillate stockpiles, which include diesel and heating oil, fell by 1.5 million barrels, versus expectations for a 2.2-million-barrel decline, the EIA data showed.

The International Energy Agency said on Thursday demand for OPEC oil would be 32.5 million bpd next year - around 150,000 bpd lower than the group pumped last month.

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Traders are saying the one of the IEA report was bearish because it suggested that demand for OPEC crude next year would not be sufficient to absorb all the available supplies.

A USA federal holiday on Monday delayed the release of weekly inventory numbers by a day.

The OPEC-led deal helped lift oil from below $30 a barrel early past year.

Many analysts expect Brent to stay between $50 and $60 a barrel as long as global markets stay balanced.

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