USA crude stockpiles drop unexpectedly last week

There will come a time when the price of crude Oil will spill down

There will come a time when the price of crude Oil will spill down

Gasoline inventories, the EIA reported, fell by 4.6 million barrels in the seven days to March 8, which compared with a decline of 4.2 million barrels in the previous week.

Brent crude futures settled at $67.55 a barrel, up 88 cents, or 1.32 percent.

Oil prices have been receiving broad support this year from supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated allies like Russian Federation aimed at tightening markets. The EIA forecasts 2019 USA crude production of 12.3 million barrels a day, down 0.9% from the February forecast.

In additional to the pledged output reduction, the crude oil markets have been getting an additional boost from the US sanctions on Iran and Venezuela.

Exports from Venezuela's main oil terminal have been stranded as its worst blackout on record has left parts of the country without power for roughly a week.

"Failures in the electrical system". Distillate fuel inventories gained a modest 400,000 barrels, after falling by 2.4 million barrels in the last week of February. Providing additional buoyancy to prices today is the news of a massive power outage in Venezuela, which is hurting the country's ability to export oil.

"The United States accounts for 70 percent of the total increase in global capacity to 2024, adding a total of four mb/d (million barrels per day)".

For the 24 hours to 23:00 GMT, Crude Oil rose 0.44% against the United States dollars and closed at USD57.16 per barrel, after the Energy Information Administration, in its short-term Energy outlook, lowered its projections for U.S. crude production growth.

"It was the first time that the United States in the last two decades was the No. 1 driver of oil consumption growth".

In Venezuela, oil production and exports have been disrupted by a political and economic crisis that has caused massive blackouts and supply shortages, while Washington has barred USA companies from doing business with the Venezuelan government, including state-owned oil firm PDVSA.

The slowdown in drilling points to more timid output growth going forward, but because the overall drilling level remains relatively high despite the recent decline, many analysts still expect USA crude output to rise above 13 million bpd soon.

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