Off shore oil platform in Huntington beach, California

US fuel stock rises unexpectedly

US saw an unexpected rise in fuel stock, despite the oil prices witnessing a sharp decline on November 29 and the cut in trading crude oil. On November 28, a report from the American Petroleum Institute claimed that US crude inventories rose from 1.8 million barrels to 457.3 million barrels within a week in November.

UAE and Russia have confirmed that the output scenario will remain constant throughout 2018. Various economists had different opinion regarding this policy of the oil-rich nation.

According to some experts, an extension should be given which is much needed before shutting down output, mainly to keep the demand-supply balance proportionate. On the contrary, there are a handful of experts who completely disagreed to this. Their claim being, this policy will do no good to the economy.

Nevertheless, the overall opinion as seen by majority of the experts, is that the decision is great indeed for the oil market as well as for a healthy global economy, as reported by Reuters.

Sources:

Moneycontrol, Hindu Business Line

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