NYMEX crude oil hit a high of $63.53 per barrel today, the highest level since Dec.2014. Crude oil surged to 3-month high supported by decline in US crude oil stocks and firmness in equity market. Further cues will now come from US EIA weekly inventory report due later today at 2100 IST.
API weekly report noted a sharp 11.2 million barrels decline in US crude oil stocks as against market expectations of 3.4 mn bbl decline. US crude oil stocks have fallen to the lowest level since Sept.2015 due to higher refinery demand.
API however also noted a bigger than expected 4.34 million barrels increase in gasoline stocks and a 4.69 mn bbl rise in distillate stocks. Distillate stocks have risen despite higher demand for heating oil due to cold weather in US.
US DJIA hit fresh record high level Tuesday amid general optimism about US and major global economies. Crude rose despite recovery in US dollar. The US dollar index rose to 1-week high on higher bond yields.
Crude rose yesterday also as EIA raised global demand growth forecast by 100,000 barrels per day to 100.11 million barrels per day in 2018. EIA however also forecasted that US crude production will hit record high level in 2018 and 2019.
US crude oil production is expected to rise by 780,000 barrels per day to 10.3 million bpd in 2018, surpassing its previous record of 9.63 million barrels in 1970.