Oil prices took a dip despite a rising bullish sentiment in the oil markets. Oil prices eased on Thursday, with US Crude dipping away from two year highs but shutdown of Keystone pipeline, Saudi oil output at 5-year lows and demand increase in coming months have bolstered the markets.
WTI has been buoyed by the shutdown of 590,000 barrels per day Keystone pipeline. The pipeline is one of the largest which stretches from Canada to United States. The news of Keystone shutdown coupled with significant drawdowns in the US Crude inventories is expected to help the markets gain positive momentum in the coming days. US Crude Stocks have dropped 15% since their peak in March, 2016.
U.S. West Texas Intermediate (WTI) crude futures were at $57.89 a barrel at 0437 GMT, down 13 cents, or 0.2 percent, from their last settlement, but still close to 2015-highs of $58.15 a barrel reached on Wednesday.
Brent crude futures, the international benchmark for oil prices, were at $63.17 per barrel, 15 cents, or 0.2 percent, below their last close.
In another comforting news to the markets, Saudi Arabia oil output has decreased to its 5-year lows at 6.55 million barrels per day. However, exports of refined oil products took a turn for positive as the oil rich nation moves from crude towards oil products. The downward export trend in the crude hints at Kingdom’s unflinching commitment to make the OPEC cuts a success.