Oil prices climb amid drop in stockpiles, strong gasoline demand

Oil prices climb amid drop in stockpiles, strong gasoline demand

Oil prices climb amid drop in stockpiles, strong gasoline demand

Crude oil prices fell Thursday, slowing an upward surge that had pushed the market toward four-year highs, after U.S. President Trump called on Opec to "get prices down now!"

Oil prices dipped on Friday after falling in the previous session as US President Donald Trump urged OPEC to lower crude prices ahead of its meeting in Algeria this weekend.

U.S. crude futures were up $1.08 at $70.93 a barrel by 11:15 a.m. [1515 GMT], after the U.S. Energy Information Administration said crude and gasoline stockpiles fell last week.

Meanwhile, WTI crude oil futures were 1.4% higher to $70.8 per barrel and Brent crude was up 0.4% to $79.3 per barrel.

"We will remember. The OPEC monopoly must get prices down now!"

Among the countries capable of increasing production beyond current levels, Saudi Arabia and Russian Federation hold about three quarters of the spare capacity, according to Bloomberg calculations using data from the International Energy Agency.

Meanwhile, EIA reported that the estimated weekly USA crude oil production went up 100,000 to 11 million barrels per day during last week.

The rebound gained steam earlier this year after production problems in countries like Venezuela and Libya caused the group to cut more deeply than they intended.

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Trump said in the message.

Crude inventories fell 2.1 million barrels in the week to September 14 to 394.1 million barrels, the lowest level since February 2015, EIA data showed.

Brent crude for November delivery was down 3 cents at $78.67 a barrel by 7.37am. This gain happened after the news was released that Saudi Arabia, the world's number one oil exporter, announced that it was fine with oil prices being above $80 per barrel. US refineries produced about 10.3 million barrels of gasoline a day last week, down by 100,000 barrels compared with the prior week.

"Midterm elections are coming up and high oil prices are bad PR for the party heading into the election", said Cook.

Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma, March 24, 2016.

The news that OPEC may increase production by a half-million barrels quickly quelled those concerns.

It is unclear how easily other producers, such as Saudi Arabia, Iraq and Russian Federation, can compensate for lost supply. Perry credits the two countries with averting a "spike in oil price".

One glaring absence from the Algiers proceedings will be Iranian oil minister Bijan Zanganeh, who has railed against Saudi Arabia and Russian Federation increasing production as Iran's market share is threatened.

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