U.S. crude stocks up, gasoline supply drops on big demand

Oil prices dip on relentless rise in US crude output

Oil prices stable after 2-day decline, but rising US output drags

Production rose as well, with USA output hitting 10.38 million barrels a day, a new weekly record; all-time daily output measured on a monthly basis broke a 47-year record in November.

West Texas Intermediate for April delivery traded at $61.12 a barrel on the New York Mercantile Exchange, up 41 cents, at 9:18 am in New York, after dropping 65 cents on Tuesday. That compares with a 2.5-million-barrel gain forecast by analysts in a Bloomberg survey.

Brent crude futures were at 64.74 dollars per barrel, up 10 cents.

"We’re not pressuring the downside that much".

This week, the API reported a smaller build for crude oil, and another draw for gasoline.

On Monday, the EIA said production from major USA shale formations should rise by 131,000 barrels per day in April vs. the previous month to an all-time high of 6.95 million bpd.

Opec cut its forecast for demand for its own crude in 2018 by 250,000 bpd to 32.61 million bpd, marking the fourth consecutive decline.

Total products supplied over the last four-week period averaged 20.4 million barrels per day, up by 3.2 percent from the same period past year.

China's industrial output grew 7.2% in the first two months of the year compared with the same period last year, beating expectations of a 6.1% hike.

Oil prices were roughly flat on Wednesday as weekly US government data showed a larger-than-expected rise in crude stockpiles south of the border, but substantial declines in fuel inventories as refineries hiked output.

The weekly oil release follows news of an uptick in USA shale deals.

A multitude of factors were weighing on oil prices, but one factor stands out among the rest, and that's the steadfast climb of U.S. crude oil production, which for the week ending March 2 increased again, coming in at 10.369 million bpd-close to the 10.7 million bpd figure that the EIA suspects we will see in 2018.

In terms of the five-year average of OECD commercial stocks that OPEC is officially targeting in the production cut deal, preliminary data for January showed that total OECD commercial stocks were 50 million barrels above the latest five-year average, with crude stocks at a surplus of 74 million barrels and product stocks at a deficit of 24 million barrels to the seasonal norm.

Venezuela's oil production plunged by another 52,400 bpd in February over January and averaged 1.548 million bpd last month.

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