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Home / Business / Oil prices rise after greater than expected declines in US stocks

Oil prices rise after greater than expected declines in US stocks



Oil prices traded higher Wednesday after an industry report said US crude prices fell last week by more than double the amount analysts had forecast in a Reuters survey.

Brent commodity futures rose 51 cents, or 0.6%, to $ 62.89 barrels per 0405 GMT, while West Texas Intermediate (WTI) futures were up 54 cents, or 0.9%, to $ 57.94 per barrel.

Prices had fallen lower on Tuesday, fueled by speculation over sanctions that hit Iranian crude back into the market following US President Donald Trump's move to fire national security adviser John Bolton, a noted Iraqi political hawk.

But they came back after data from the American Petroleum Institute (API) late Tuesday showed that US crude oil and gasoline stocks fell last week while distillate stocks were being built.

"Oil should remain supported in Asian trade, mainly supported by the daily API commodity inventory data," said Jeffrey Halley, senior market analyst at OANDA.

API figures had US crude oil business down 7.2 million barrels a week, ending September 6 to $ 421

.9 million, compared to analysts' expectations in a Reuters poll of 2.7 million barrels.

Halley said he expected a 4.8 million barrels reduction as official figures are released by the Energy Information Administration (EIA) later on Wednesday.

The raw stocks at Cushing, Oklahoma, dropped the supply hub by 1.4 million barrels, API reports, while crude oil refining increased by 208,000 barrels per day.

Petrol stocks fell by 4.5 million barrels, the industry group said, compared to analysts' expectations of a decline of 847,000 barrels in a Reuters poll.

Prices had risen sharply before Bolton's removal, bolstered by Prince Abdulaziz bin Salman, Saudi Arabia's new energy minister said that the state's oil policy would not change and an agreement with other manufacturers to cut production by a total of 1.2 million barrels per day would maintained.

Iran's oil exports we were reduced by more than 80% due to reintroduced US sanctions after Trump last year abandoned the nuclear deal between Tehran and the world powers.


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