Oil rises 2.5 percent after surprisingly large United States crude stock draw

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Increased shale production will transform the USA into one of the world's top oil exporters in just a few years, according to a new forecast by the consultancy PIRA Energy Group.

The U.S. Energy Information Administration lowered its outlook on Brent crude for 2017 and 2018 to last month's projections by $2 and $4, respectively, to $51 per barrel and $52 per barrel, but oil prices have been climbing so far Tuesday.

Nigeria and Libya, whose output has been hit by political turmoil and attacks, are exempt from an OPEC deal aimed at cutting excess oil supplies.

Delaney said the growth in exports will be driven primarily by increased shale production.

The additional supply from the U.S.to an already over-saturated oil market has often been blamed for plummeting prices. However, the expectation for lower prices will drag on USA oil production in 2018. Within half an hour, oil had given back all but about 15 cents of its gain.

Editor's Remarks: US oil companies faced a 40-year ban on most crude exports until 2015.

Brent crude futures rose 65 cents, or 1.4 percent to $48.17 per barrel by 0155 GMT, while U.S.

However, the bulk of the advance was triggered by yesterday's release from the American Petroleum Institute which showed that oil inventories fell by a much more-than-expected 8.1 million barrels in the week ending July 7. This fate looks shaky as USA shale producers are already pulling back and reports of investment capital for shale is drying up. The source added that crude exports will fall to their lowest level this year in August, a level expected to be around 6.6 million barrels per day.

USA oil production has jumped more than 10 percent over the past year to 9.34 million bpd.

The EIA expects demand for petroleum and other liquids to rise by 360,000 barrels a day, or 1.8 percent, next year.

European refineries increased crude oil intake in June, but stocks of oil products, particularly diesel, slid, Euroilstock data showed on Tuesday.

The EIA does forecast production to average 9.9 million b/d in 2018, which would mark the highest annual average production in US history, surpassing the previous record of 9.6 million b/d set in 1970.

The stability recorded in the production of oil in Nigeria has also increased employment for the second month in a row.

U.S. gasoline imports rose by 168,000 bpd to 739,000 bpd on June 23-30, 2017.

Hurt by these news, oil prices registered an acute drop on July 5 after their longest rally in more than five years.

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