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UPDATE 5-Oil mixed after U.S. crude stocks draw; Forties outage lends support

UPDATE 5-Oil mixed after U.S. crude stocks draw; Forties outage lends support
From Reuters - December 13, 2017

NEW YORK (Reuters) - Oil prices bounced between positive and negative territory on Wednesday after U.S. crude stockpiles fell more than expected, though that was somewhat offset by a larger-than-forecast rise in gasoline inventories and more growth in U.S. oil production.

Expectations for an extended shutdown of a major North Sea crude pipeline continued to bolster Brent crude, the world oil benchmark.

U.S. crude inventories dropped by 5.1 million barrels, more than anticipated, and U.S. production figures hit another new record at 9.78 million barrels a day for weekly data. The U.S. peak, when records were only kept on a monthly basis, is 10.04 million bpd, set in November 1970.

The report is modestly supportive on the large crude oil inventory decline. That decline was offset mightily by the large increase in gasoline inventories, said John Kilduff, partner at energy hedge fund Again Capital LLC in New York.

U.S. West Texas Intermediate crude fell 3 cents to $57.11 a barrel as of 10:57 a.m. EST. Brent crude fell 23 cents to $63.04 a barrel. It settled down 2.1 percent on Tuesday on a wave of profit-taking after the North Sea pipeline shutdown helped send the global benchmark above $65 for the first time since mid-2015.

Britains biggest pipeline from its North Sea oil and gas fields is likely to be shut for several weeks for repairs. On Wednesday morning, its operator said it was still considering repair options and reiterated that any repairs would take several weeks.

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