Oil prices drop on USA petrol level shocker

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Crude Inventories of USA crude fell by roughly 5.6 million barrels for the week ended December 2, beating expectations of a draw of 3.4 million barrels.

Oil prices climbed more than 1 percent on Thursday due to a threatened strike in Nigeria and as traders cover shorts after sharp losses the previous day brought on by an unexpectedly large rise in USA stocks of refined fuels.

Gasoline stocks rose 6.8 million barrels, to 220.9 million barrels, according to the report from the U.S. Energy Information Administration (EIA), much more than analyst expectations in a Reuters poll for a gain of 1.7 million barrels.

Marketmen said the fall in crude oil futures was mostly attributed to trimming of positions at futures trade in tandem with a weakening trend in Asian trade after official data confirmed a huge build in United States gasoline supplies, offsetting the data showing crude stockpiles fell for the third straight week.

Stephen Brennock, an analyst with London oil broker PVM, said in an emailed market report that geopolitical issues may be the next wildcard for the price of oil.

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Oil is averaging about $54 a barrel this quarter, the highest in more than two years, after the Organization of Petroleum Exporting Countries and its allies agreed to extend output cuts to the end of 2018. Libya will maintain current output to stay in line with the agreement, a person familiar with the matter said.

Futures price for WTI crude oil for January in electronic trading on the NY Mercantile exchange (NYMEX) has increased by this time to $0,19 (0,34%) to $56,15 per barrel. Total volume traded was about 42 percent below the 100-day average.

Oh Eun-soo, an analyst at KB Securities Co., projected worldwide oil prices to rise further next year due to heightened geopolitical instability following the recent USA recognition of Jerusalem as Israel's capital.

The price for January Futures Brent oil grew by 0,11% to stand at $62,52 per barrel on the London ICE Futures Exchange. The global benchmark traded at a premium of $5.30 to February WTI. It surpassed the consensus forecast of experts polled by S&P Global Platts, which included a decline of 4.1 million barrels.

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