Oil prices went down during the Asian morning trade session on Friday, reacting to positive forecasts on the growth of inventories and production rates.
Futures on U.S. West Texas Intermediate oil for delivery in August lost 0.20% and reached the level of $45.99 per barrel. On the London ICE Futures Exchange, futures on Brent for delivery in September went down by 0.14% and touched the position of $48.35 per barrel.
Oil fell on Friday during the Asian trade, even though it was notably rising during the week. Oil prices showed the best performance in several months, as U.S. inventories drop and possibility of an additional OPEC’s restriction for some of its countries revokes the fuel market from its depressed state that lasted for three years.
The position of oil started rising on Tuesday after the crude stockpiles report indicated the West Texas Intermediate crude inventories (located in Oklahoma, U.S.) moved down by 2.1 million barrels a week ago. Oil continued its upside movement on Wednesday after the U.S. Energy Information Administration (EIA) released the data on oil stocks drop by 7.6 million barrels in the same period. American Petroleum Institute (API) reported the day before about more significant inventory decrease (by 8.1 million barrels), but the actual results were three times higher than expected.
On Thursday, Nigeria reported that it is going to narrow its oil output after the production rate reached the level of 1.8 million barrels per day. The crude production rate of the country was close to the May’s target number of 1.733 million bpd. The output is expected to be even closer in June.
On Thursday, China (the second largest oil consumer in the world) reported about a sharp increase in both exports and imports. The global demand growth made exports increase by 11.3% in May, compared to the previous year, while imports rose by 17.2%. The imports growth affected the oil position as well, since China informed about a 13.8% rose to 8.55 million barrels per day during the first half of 2017. The oil import also moved up by 15.4% in May (year-on-year) and reached 273 million barrels.