Oil slips as trade dispute outweighs US stock decline

Oil slips as trade dispute outweighs US stock decline

Oil slips as trade dispute outweighs US stock decline

Still, he said, prices drew support from the bigger-than-expected draw in USA crude inventories reported on Wednesday by the Energy Information Administration (EIA).

Data released Wednesday by the U.S. Energy Information Administration revealed crude inventories declined by 5.8 million barrels in the last week, compared with analysts' expectations for an decrease of 1.5 million barrels.

Oil prices rose 3%, with Brent crude futures hitting a three-week high.

In June, China was the biggest foreign buyer of American crude, importing a record 15 million barrels that month. The port district of Houston-Galveston accounted for 12 percent of total USA crude oil imports as of May.

Nearly 60 percent of the 6.4 million new barrels of oil pumped every day between now and 2023 will come from the United States, according to the IEA.

USA commercial crude oil inventories C-STK-T-EIA fell by 5.8 million barrels in the week to August 17 to 408.36 million barrels, the Energy Information Administration (EIA) said on Wednesday.

The EIA also said USA oil production C-OUT-T-EIA was rising, reaching 11 million barrels per day last week.

According to the news report by Bloomberg, the price of oil went up despite low trading volumes, just ahead of the weekly crude oil supply data report in the US.

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Brent crude oil futures LCOc1 were at $75.07 per barrel at 0424 GMT, up 34 cents, or 0.5 percent, from their last close.

Iran is the third-biggest producer within the Organization of the Petroleum Exporting Countries (OPEC) and the nation exports around 2 million barrels per day of crude, equivalent to around 2 percent of global consumption.

India's crude oil imports declined amid fear of sanctions from the U.S. as back in June the United States has also asked all countries including India, to stop oil imports from Iran by November or else face sanctions from the US.

"The Iran issue continues to occupy traders' minds", said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

Opec has started to boost supplies following a deal with Russian Federation and other allies in June, although producers have been cautious so far.

According to BNP Paribas' London head of commodity markets strategy, Harry Tchilinguirian, considering the amount of oil lost from Iranian exports, it would need increases in production from other suppliers like Saudi Arabia to stabilize the oil market.

The US/China trade tensions fuelled concerns that global economic growth could slow, weakening worldwide energy demand.

USA and Chinese officials were set to resume talks on Wednesday, but Trump said he expected there will be no real progress.

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