Oil gains on API stockdraw, Gulf of Mexico storm
A petrobras oil platform floats in the Atlantic Ocean near Guanabara Bay in Rio de Janeiro.
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Oil prices rose more than 2% on Wednesday after industry data showed U.S. inventories fell more than expected, while major U.S. Producers evacuated rigs in the Gulf of Mexico ahead of a storm.
U.S. West Texas Intermediate Crude futures climbed $ 1.37 to $ 59.20, after a session high of $ 59.18.
Brent crude futures were up $ 1[ads1].45 at $ 65.61, down from a session high of $ 65.47.
Data from the American Petroleum Institute (API) on Tuesday showed US crude inventories fell by 8.1 million barrels in the week to July 5 to 461.4 million, compared with analyst expectations for a decrease of 3.1 million barrels.
Official figures from the government's Energy Information Administration (EIA) are due later on Wednesday.
"Prices are finely balanced right now as investors await fresh stimulus," said Fawad Razaqzada, technical analyst at FOREX.com. "The stimulus could come in the form of a sharp change in US crude oil inventories."
Meanwhile big oil companies started evacuating and shutting in production in the Gulf of Mexico after weather forecasts warned that a tropical disturbance might become a storm later on Wednesday or Thursday
Chevron Corp., Royal Dutch Shell, BP and BHP Group Ltd are removing staff from 15 offshore energy platforms. Exxon Mobil Corp said it was closely monitoring the disturbance of its facilities might be affected.
crude oil output which stands at around 12 million barrels per day (bpd).
"Assuming that the 1 / 8th storm 3/8 will cause some evacuations, then you would expect to have a limited short-term impact but perhaps it's a bit too early to say", said Paul Horsnell, head of commodities research at Standard Chartered
The US and global benchmarks have been the year of the Organization of the Petroleum Exporting Countries (OPEC) and big producers such as Russia have curbed output to prices
The alliance, known as OPEC +, agreed last week to extend their supply-cutting deal until March 2020. Tensions around Iran's nuclear program and recent incidents involving oil tankers have also supported prices.
Iran's President Hassan Rouhani said on Wednesday Britain would face "consequences" over the seizure of an Iranian oil tanker near the coast of Gibraltar. last week.
Oil prices have been under pressure from the outlook for global economic growth because of the US-China trade as well as record oil supply growth.
The EIA on Tuesday revised its US crude oil production forecast for 2019 to an all-time high of 12.36 million bpd.
