Increase in US crude oil production

Oil prices are gaining this morning and thereby recouping some of the losses they suffered yesterday. Brent has risen to $52 per barrel and WTI to $48 per barrel. The optimistic remarks made about oil demand by OPEC Secretary General el-Badri still appear to be having after-effects. The Syrian army's Russian-supported ground offensive is also likely to have lent support to prices. Brent had achieved a five-week high of a good $53 per barrel for a time yesterday before disappointing US inventory data put pressure on prices, notes Commerzbank. 

According to the US Department of Energy, US crude oil stocks climbed by 3 million barrels last week, whereas the API had reported an inventory reduction the day before. Oil stocks have also risen at Cushing. Gasoline stocks have bucked the seasonal trend and are likewise higher. Distillates, on the other hand, saw a (seasonally typical) inventory reduction. 

Although there was a noticeable drop in crude oil imports, this was offset by a marked decline in crude oil processing as many refineries are currently undertaking maintenance work and switching to winter operation. The 76,000 barrel per day increase in crude oil production came as a surprise and makes it doubtful whether any sharp fall in US oil production is imminent. If such doubts were to gain the upper hand, oil prices would presumably shed their latest gains again. After all, the expectation of a pronounced decrease in production was one major reason for the price rise in recent days