EIA: actual growth in US oil reserves 10 times higher of forecast

Baku. 3 November. REPORT.AZ/ Crude inventories rose 14.4 million barrels in the week to Oct. 28, , compared with expectations for an increase of 1.0 million barrels. Report informs citing the "Bloomberg" EIA said on Wednesday.

Crude stocks at the Cushing, Oklahoma, delivery hub rose 89,000 barrels, EIA said.

Gasoline stocks fell 2.2 million barrels, compared with analysts' expectations for a 1.1 million-barrel drop.

Distillate stockpiles, which include diesel and heating oil, fell 1.8 million barrels, versus expectations for a 1.9 million-barrel drop, the EIA data showed.

Analytical Group of Report says the sharp increase in U.S oil reserves is due to the recommissioning of the oil rigs. Thus, the number of drilling wells after the increase, which lasted 18 weeks, showed only a slight fall last week.

The number of active drilling wells is now 125 units which means an increase of 40%. Thus daily oil production in US increased by 18 thousand barrels or 0,21% and reached 8,522 mln barrels.

OPEC members Iran, Nigeria and Libya have already secured exemptions from the agreement because they have faced petroleum-output disruptions.

Because of these concerns international oil prices have been falling for three straight sessions.

"Prices continue to retrace lower and have wiped out most of the OPEC premium," said Olivier Jakob, an analyst from the Switzerland-based consultancy Petromatrix.

"The oil cartel has been talking about cutting production but production has been rising, the crude oil markets are still under pressure from a lot of physical availability", he said.

Analytical Group of Report believes oil prices will not fall below 45 USD/barrel on the eve of the Vienna Summit: "After the summit, oil prices will fluctuate between 35-55 USD/barrel depending on the meeting results".