Oil prices grow as U.S. inventories drop

The nation's commercial crude inventory fell by 7.6 million barrels last week

Also, at 495.4 million bbl, USA crude oil inventories were in the upper half of the average range for this time of year.

Data from the Energy Information Adminstration (EIA) says crude inventories dropped off by 7.6 million barrels last week, compared with analysts' expectations for an decrease of 2.9 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 2 million barrels, API said. West Texas Intermediate, the USA benchmark for the price of oil, was up 1.9 percent to $45.92 per barrel.

The Energy Information Administration will release official USA petroleum inventory and production figures on Wednesday at 10:30 a.m. ET. Analysts predict a decline in inventories for the week ended on July 7, by 0.57 percent, or 2.850 million barrels, to 500.05 million barrels, according to RIA Novosti. West Texas Intermediate (WTI) crude futures were at $45.77 per barrel, up 73 cents, or 1.6 percent.

Signs of strong short-term demand helped stem losses.

USA gasoline demand over past four weeks was also 0.3% lower from a year ago.

Lower than earlier forecast crude oil prices are expected to translate into continued low prices at the pumps for both diesel and gasoline, according to a new U.S. Energy Department report.




He said BNP Paribas had slashed its forecasts for Brent by $9 to $51 a barrel for 2017 and by $15 to $48 for 2018.

Oil prices were just continuing the positivity from yesterday's session which was up by 1.4%.This is because of the industry group American Petroleum Institute showed data that the oil production was really cut down; it was at 8.1 million contractions in the USA crude supplies last week.

The major increase in supply would further undermine the strength of OPEC, which was exporting an average of 25 million barrels a day in 2016.

Production by the two African nations have surged in the past three months, raising concerns from other OPEC members.

Saudi Arabia will cut crude oil exports in August by more than 600,000 barrels per day to meet growing domestic demands while staying within its OPEC production commitment. As per an article published on Bloomberg, Russia will likely disapprove any talks related to deepen the crude oil output cuts in the meeting slated on July 24 beyond the current limit effected by OPEC and some other oil producers. However, Saudi Arabia has claimed to have ramped up its oil production by a staggering 190,000 bpd in June, putting the country back above the 10-million-bpd mark at 10.07 million barrels per day, based on direct communication with the cartel's de facto leader. Daily gasoline production averaged 10.5 million barrels, with refineries operating at 94.5 percent of capacity and processing 17.2 million barrels of crude.

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