Based on an S&P Global Platts preview of the EIA oil stocks data, us oil stocks are expected to have risen by 2.7 million barrels last week. If confirmed in a government tally scheduled to be released today, inventories will have racked up increases in four of the past five weeks.
In a related development, the United States will overtake Russian Federation as the world's biggest oil producer by 2019, International Energy Agency (IEA) Executive Director Fatih Birol has said.
The market was also pressured by the rising dollar and stock markets, said Flynn.
As the Organisation of Petroleum Exporting Countries works to trim output, producers are committed to bringing supply and demand into balance, United Arab Emirates Energy Minister Suhail Al Mazrouei said yesterday in Abu Dhabi.
Still, OPEC and its allies seem unfazed by USA shale and continue to send messages to the market that they will do "whatever it takes" to balance the oil inventories and that production cuts are here to stay until the end of 2018. This, it pointed out, was down from last year's gain of 1.6 mb/d, as higher oil prices, shifting Chinese demand patterns and fuel switching in non OECD countries slows growth. Don't be shocked if the oil market is flooded, despite the demand increasing.
"In spite of refiners undergoing maintenance, they continue to process more crude compared to previous years adding to gasoline and diesel supply", said Andrew Lipow, president at Lipow Oil Associates in Houston.
The IEA noted that, "After reaching an all-time high in 4Q17, global refining throughput is expected to slow by 0.4 mb/d in 1Q18 to 81.1 mb/d due to seasonal maintenance, primarily in the USA and Middle East".
But there's one thing that mainstream seems to be getting wrong. Total volume traded was about 21 per cent below the 100-day average.
Brent crude rose 19 cents to settle at US$67.50 a barrel. The global benchmark crude traded at a $3.70 premium to WTI.
Strength in the dollar also weighed on crude prices as a rising greenback diminished the appeal of commodities priced in the U.S. currency.
The dollar rose 0.1 percent to against the Japanese yen to 107.43 yen.
The report said Chinese oil imports fell by 1.1 million barrels per day in December in monthly terms to 8.0 million barrels per day, with a contraction of 634,000 barrels per day year-on-year. EIA data also showed distillate stockpiles, which include diesel and heating oil, fell by 1 million barrels, versus expectations for a 709,000-barrel drop. That would make for a 10th straight week of declines.
NEW YORK, Feb 27 (Reuters) - Oil fell on Tuesday as a firmer dollar encouraged investors to take profits from a two-week rally ahead of weekly data that analysts have forecast will show a build in USA crude inventories.