U.S. crude oil prices rose Friday, adding to recent gains as analysts were bullish about oil in 2019. Domestic crude oil inventories edged lower, countering a report suggesting another big build.
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U.S. crude oil inventories fell by 46,000 barrels last week, while gasoline supplies swelled 3 million barrels, the Energy Information Administration said Friday morning. Domestic crude oil production rose slightly to 11.7 million barrels per day. The EIA data were delayed from Wednesday due to the Christmas holiday.
The crude oil inventories drop was less than the 1.4-million-barrel decline forecast by S&P Global Platts. But late Thursday, the American Petroleum Institute reported a 6.92 million-barrel increase in U.S. crude stockpiles, fueling oversupply worries.
Ahead of the EIA data release, Phil Flynn, a senior market analyst at Price Futures Group, said the API report appeared to be "out of whack."
"The numbers seemed to be out of whack and it is most likely because they were impacted by closure of the Houston Shipping Channel, making the numbers less impactful," he wrote in his morning Energy Report.
U.S. crude oil prices rose 1.6% to $45.33 per barrel after rebounding following a Christmas Eve plunge. U.S. crude futures fell 0.6% for the week.
Brent crude oil prices edged up 4 cents to $52.20 Friday.
Exxon Mobil (XOM) shares sank 1.1% on the stock market today. Fellow Dow Jones energy giant Chevron (CVX) lost 0.6%. Shale producer EOG Resources (EOG) dipped 1.4%.
The Dow Jones and other major indexes extending recent gains Friday afternoon after surging Wednesday and closing higher Thursday.
Forecasts For Crude Oil Prices
Oil analysts still expect crude oil prices to rise next year after bottoming out, with Brent averaging $70 a barrel, according to a Bloomberg survey. The analysts expect crude oil consumption to grow, barring any severe global economic slowdown as China, especially, consumes more oil.
But U.S. crude oil production growth will likely slow, though the EIA still sees the 2019 average rising to 12.06 million barrels a day from about 11.8 million now.
"These weak prices are likely to force a slowdown in U.S. growth in the second half of 2019," Warren Patterson, senior commodities strategist at ING NV, told Bloomberg.
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The post Crude Oil Prices Rise As EIA Oil Data Ease Oversupply Fears appeared first on Investor's Business Daily.
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