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MTECHTIPS:-NYMEX crude in Asia faces pressure after large API build reported
Crude oil futures face pressure in Asia on Wednesday after industry data showed a larger expected build in U.S. stockpiles. On the New York Mercantile Exchange, WTI crude for April delivery was last quoted at $33.89 as the Asian day gets started. U.S. API weekly crude stocks rose more-than-expected last week, the American Petroleum Institute said late Tuesday, up 9.9 million barrels, compared to a 7.1 million barrels build in the preceding week and well above the 2.5 million barrels gain seen. U.S. weekly distillates stocks rose 2.7 million barrels, while the weekly Gasoline stock dropped 2.2 million barrels. Later on Wednesday the U.S. Energy Information Administration (EIA) releases its Weekly Petroleum Status Report and analysts are bracing for a 3.5 million build in stockpiles for the week ending on Feb. 26. A week earlier crude inventories rose by 3.5 million barrels to an all-time high of 507.6 million, as storage levels at the nation’s top facilities continue to approach full capacity. At the same time, oil services firm Baker Hughes said last Friday that the number of oil rigs nationwide fell by 13 to 400 for the week ending on Feb. 19, marking its 10th straight week of declines. While U.S. shale producers have demonstrated surprising resiliency by drilling at near maximum efficiency, falling rig counts typically provide lagging signals of imminent declines in output. As markets worldwide remain awash in a glut of oversupply, any major production cuts are viewed as bullish for crude.
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