Crude Oil Drops After API Report and EIA’s Energy Outlook

Crude oil futures edged lower on Wednesday after plunged on Tuesday on the back of an industry report that showed U.S. crude inventories increased last week.

The American Petroleum Institute on Tuesday said that U.S. supplies rose 11.6 million barrels last week, much higher than economists’ forecast for a rise of 1.1 million barrels. Energy Information Administration data will be published later on the day.

U.S. crude shale output is expected to keep rising and may reach a record next year as domestic drillers jumped back in the market in the wake of higher prices. According to EIA’s monthly Short-Term Energy Outlook released on Tuesday, U.S. production will surge to 9.21 million barrels a day in 2017 from 8.98 million projected in February.

The agency also stated that output is anticipated to increase to an average 9.73 million barrels a day for 2018, and may top 10 million barrels a day in December 2018.

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