USA crude stockpiles fall less than expected

USA crude stockpiles fall less than expected

USA crude stockpiles fall less than expected

Meanwhile, traders looked ahead to a report from The American Petroleum Institute on USA crude inventory, due this evening.

Distillate stockpiles, which include diesel and heating oil, rose by 1.2 million barrels, versus expectations for a 220,000 barrels increase, the EIA data showed.

US crude stockpiles were expected to have dropped 3.3 million barrels last week.

Along with supply risk attributed to over reliance of imported foreign crude, there is the issue of transfer of wealth, again something that plagued the US for almost 40 years and forced its hand as it became involved in countless military endeavors in the Middle East.

It is expecting the first VLCC to be delivered to Vadinar in Gujarat in November and a second cargo at Mundra in the same state in December.

"We think India will continue to buy U.S. oil given the strength in USA production and the Indian market can emerge as a reliable buyer of United States oil", said Sri Paravaikkarasu, head of East of Suez Oil at consultancy FGE.

Iran's oil industry is expected to be hit in the next round of economic penalties against the country, set to take effect in November.

Prior to this deal, International Olympic Committee had struck deals for importing 10 million barrels from six cargoes in the spot market.

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India first imported U.S. crude oil in October previous year and has since then oil firms have been buying oil from that country on a tender basis. The price for Brent crude oil, the global benchmark, was up 0.15 percent as of 9:22 a.m. EDT to $72.39 per barrel. Saudi Arabia reportedly pumped 10.3 million barrels per day (bpd) of crude in July, down about 200,000 bpd from a month earlier.

As recently as June, China was the top foreign buyer of U.S. crude, importing a record 15 million barrels that month. OPEC and Russian Federation reported an increase in their output by 300,000 and 150,000 barrels per day in July, respectively.

Some sources have said with exports falling, Iran's domestic refinery runs have increased, with a pick-up in gasoline output observed at some of its refineries, and more barrels are expected to go onto floating storage. Exports of refined products rose by 174,000 barrels a day last week to 5.2 million.

USA gasoline futures fell 3.8 percent to $2.025 per gallon.

Here is a look at how share prices for two blue-chip stocks and two exchange-traded funds reacted to this latest report. WTI Midland and WTI Cushing usually trade close to par, but there were several times over the past two years the spread has blown out, sometimes to up to 20 dollars a barrel.

Britain's FTSE 100 fell 0.7 per cent to 7,721 while Germany's DAX dipped 0.4 per cent to 12,585.

The price of the West Texas Intermediate (WTI) for September delivery and Brent for October delivery decreased by 0.75 percent and 2.10 percent, respectively, in the week.

The VanEck Vectors Oil Services ETF (NYSEAMERICAN: OIH) traded down about 0.3%, at $25.64 in a 52-week range of $21.70 to $29.87.

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