US crude oil prices slip while oil production grows

As investors awaited news whether OPEC will extend its production curbs through the early winter, they learned U.S. oil production was on the increase while gasoline inventories were dropping—resulting in falling crude prices nationally while increasing in Europe.

Crude prices dropped nearly 2% by mid-afternoon on Tuesday after the American Petroleum Institute reported increased crude oil inventories of 4.146 million barrels for the week that ended last Friday. Analysts had predicted instead, a draw of more than 2.3 million barrels for the week.

West Texas Intermediate crude ended the day down 24 cents at $44.31 for a change of 0.54%.

Global benchmark Brent Crude dropped 46 cents for a 1% fall to $47.42 per barrel.

At the Cushing crude oil storage center in northern Oklahoma, inventories fell by 132,000 barrels compared to a national distillate inventory increase of 334,000 barrels for the week.

Oil production across the U.S. as of November 20, according to the Energy Information Administration was 11 million bpd, or 2.1 million bpd lower than the all-time high 13.1 million reached in March of this year.

The API reported a build in gasoline inventories of 3.402 million barrels of gasoline for the week ending November 27—compared to the previous week’s 1.3-million-barrel build. Analysts had expected a 2.386-million-barrel build for the week.

One of the bright spots in Tuesday’s trading of Oklahoma energy stocks was LSB Industries, Inc. where shares climbed more than 8% with a 21-cent increase, finishing the day at $2.72.

Surprisingly, some energy stocks had a good day as oil prices on the NYMEX took a nearly one-dollar-a-barrel dive.

Alliance Resource Partners, L.P. fell 6 cents for a 1.33% slide to $4.44 per share. Blueknight Energy Partners LP shares had a 5 cent gain for about 3% to settle at $1.74. Chesapeake Energy Corporation slid 11 cents for a 4.26% drop to $2.47.