A Wall Street Journal survey estimates that USA crude oil inventories would have fallen by 3.5 MMbbls between May 26, 2017, and June 2, 2017.
The U.S. Energy Information Administration (EIA) said on Tuesday U.S. crude oil production C-OUT-T-EIA could hit a record 10 million bpd next year, up from 9.3 million bpd now and nearly equaling top exporter Saudi Arabia.
Thanks to the shale boom, the U.S.is now a major oil exporter, which could threaten oil prices.
The increase in fuel inventories pushed oil prices lower with WTI dipping back below $48.00 p/b as Brent dipped back below the $50.0 p/b level.
Tuesday evening the American Petroleum Institute (API) reported that crude inventories fell by 4.6 million barrels in the week ending June 2.
According to a Wall Street Journal analysis of data from the U.S. Energy Department and the International Trade Commission, the U.S. exported 1 million barrels of oil a day during some months so far this year, double the pace of 2016. The 1.8 million barrel a day reduction was enacted to drive the price of oil up and make the industry more profitable to OPEC producers.
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Currently, oil prices gained support from growing tensions in the Middle East and signs of decline in United States inventory.
"Qatar is. committed to the supply cut decision and its compliance ratio ranges between 93 and 102 percent", the Kuwait oil minister said.
As the de facto leader and largest producer of OPEC, Saudi Arabia has cut its production the most of any member of the bloc.
Moreover, data from industry group the American Petroleum Institute had suggested on Tuesday that US crude inventories fell by 4.6 million barrels.
Money managers shaved short positions in West Texas Intermediate futures and options by 13 percent and long positions by 0.9 percent in the week ended May 30, according to US Commodity Futures Trading Commission data.
The tensions would normally add a risk premium the price of oil given that several of the nations involved in the row are members of the Organization of Petroleum Exporting Countries and the Persian Gulf is a choke point for oil exports from the region.
USA crude output has jumped more than 10 percent since mid-2016 to 9.34 million bpd, industry figures show.
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