Oil prices fell flat early Thursday as questions about OPEC's efforts to balance the market overshadowed possible U.S. offshore production issues.

Crude oil prices rallied Wednesday after the U.S. Energy Information Administration issued a report indicating further drawdowns in U.S. crude oil and gasoline inventories, a sign the market in the world's largest economy was starting to balance out.

Geoffrey Craig, the oil futures editor for pricing group S&P Global Platts, said the U.S. oil supply surplus has been cut from about 40 percent to 20 percent since early February.

"But traders already appear to be looking ahead to next month, when crude stocks typically build as refinery demand fades when units are taken offline for the fall maintenance period," he said in an emailed report.

Members of the Organization of Petroleum Exporting Countries and a handful of other producers, meanwhile, are working to erase the oversupply with production cuts of their own. A monitoring committee said Thursday that "all options" were on the table to ensure the measure works as planned.

Discipline is deteriorating, however, as reported compliance with the deal has moved lower since June. Kazakhstan, a non-member state contributor, is on pace to produce more from its flagship Kashagan oil field and an emailed report from London oil broker PVM said waning compliance is a "very real possibility."

The price for the basket that makes up Brent crude oil, the global benchmark, was down 0.42 percent at 9:18 a.m. EDT to $52.35 per barrel. West Texas Intermediate, the U.S. benchmark for the price of oil, was down 0.87 percent to $48 per barrel.

Questions about OPEC overshadowed the closure of some installations in the U.S. Gulf of Mexico in response to Tropical Storm Harvey, which could hit the southern coast of Texas as a hurricane by late Friday. About 20 percent of the total U.S. crude oil production is centered in the Gulf of Mexico and four installations are already shut in by the storm.

On the economic front, the U.S. Labor Department reported first-time claims for unemployment increased 2,000 from last week and the previous week's numbers were revised higher by 1,000, though the four-week moving average, a less-volatile measurement, was down 2,750 from the previous week.

Elsewhere, the broader markets are watching as the world's central bankers kick off their annual meeting in Jackson Hole, Wyo., late Thursday morning. Investors will look at any statements there for a broad assessment about the health of the overall economy.

Tweet

ExxonMobil misled public on climate for decades: study
Paris (AFP) Aug 23, 2017
US oil giant ExxonMobil knowingly misled the public for decades about the danger climate change poses to a warming world and the company's long-term viability, according to a peer-reviewed study released Wednesday. An analysis of nearly 200 documents spanning decades found that four-fifths of scientific studies and internal memos acknowledged global warming is real and caused by humans. ... read more

Related Links
All About Oil and Gas News at OilGasDaily.com

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only