Oil edges up ahead of US data
10 Aug 2017 - 0:02
London: Oil rose towards $53 a barrel yesterday ahead of a US inventory report expected to show crude stocks dropped for a sixth week, although gains were capped by doubts about compliance with Opec-led supply cuts.
Crude inventories last week fell by 7.8 million barrels, more than expected, but gasoline stocks rose unexpectedly, data from the American Petroleum Institute (API) showed on Tuesday before the release of Wednesday’s official numbers.
Brent crude, the global benchmark, was up 50 cents at $52.64 at 1304 GMT, after two days of decline. US West Texas Intermediate (WTI) crude added 44 cents to $49.61.
Analysts expect crude stocks to have fallen by 2.7 million barrels and gasoline by 1.5 million barrels.
“They are also likely to show a significant inventory reduction due to lower imports,” Commerzbank’s Carsten Fritsch said of the Energy Information Administration report.
A further drop in US crude stocks would raise hopes that an Opec-led effort to wipe out a three-year, price-sapping supply glut is working.
The Organization of the Petroleum Exporting Countries, Russia and other producers are cutting output by about 1.8 million barrels per day (bpd) under a deal that took effect on January 1 and is currently set to run until March 2018.