Oil prices fall on bloated U.S. market, but other regions tighten

SINGAPORE (Reuters) - Oil prices fell on Thursday as file U.S. crude inventories underscored that markets remain bloated, although merchants mentioned there have been signs that other areas have been progressively tightening.

Brent crude futures had been at $54.09 per barrel at 0530 GMT, down 27 cents, or zero.5 %, from their final shut.

U.S. West Texas Intermediate (WTI) crude futures have been down 26 cents, or zero.5 percent, at $50.89 a barrel.

merchants stated the declines were as a result of rising U.S. crude production that bolstered inventories to report levels.

U.S. fuel inventories and oil manufacturing levels are key as to whether the us remains the world's biggest oil importer, helping to improve prices, or if hovering output and big stocks lower imports, which might weigh on oil markets.

The U.S. power information Administration (EIA) stated a rise of 1.fifty seven million barrels in crude inventories late on Wednesday, bringing whole U.S. shares to a file of 535.5 million barrels.

"in a single day crude inventory numbers pulled the rug out from below the toes of the oil rally," said Jeffrey Halley, senior analyst at futures brokerage OANDA.

The report crude inventories came as U.S. oil manufacturing rose 52,000 barrels per day (bpd) to 9.2 million bpd, a more than 9 % elevate because mid-2016 to ranges final seen firstly of the market stoop in late 2014 and early 2015.

within the U.S. crude inventories, stocks at Cushing, the supply hub for WTI, rose 1.4 million barrels to a record 69.1 million barrels. Rising shares at Cushing, in Oklahoma, typically are inclined to depress the price of the U.S. benchmark.

Cushing crude tank farms have a total storage capacity of 77 million barrels, said Ole Hansen, head of commodity strategy at Saxo bank.

as a result of the glut, U.S. crude exports have soared to a file 1.1 million bpd, with most cargoes going to Asia, the place traders say there are early indicators of a tightening market because of efforts led with the aid of the organization of the Petroleum Exporting international locations (OPEC) to chop output so as to prop up prices.

"the global picture is extra essential (than simply the U.S.) and stocks are being drawn," stated Oystein Berentsen, managing director at oil buying and selling firm strong Petroleum in Singapore.

in the brief-time period, he stated, a number of oil was being bought out of storage all over the world, including to the upcoming glut.

but Berentsen warned that once a significant quantity of crude had been sold out of inventories, "then you definately get the whole impact (of tighter provides)."

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