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Brent nears $72 amid tightening supplies; surprise draw in US crude stocks

Oil&Gas Materials 17 April 2019 07:10 (UTC +04:00)
Oil prices rose on Wednesday, supported by concerns over tightening global supply due to US sanctions and fighting in Libya, as well as an unexpected fall in US crude inventories.
Brent nears $72 amid tightening supplies; surprise draw in US crude stocks

Oil prices rose on Wednesday, supported by concerns over tightening global supply due to US sanctions and fighting in Libya, as well as an unexpected fall in US crude inventories, Trend reports citing Reuters.

International benchmark Brent crude oil futures rose 21 cents, or 0.3 percent, to $71.93 a barrel by 0034 GMT. Brent earlier hit a fresh five-month high of 71.96 a barrel, the highest since Nov. 8 when prices topped $72 a barrel.

US West Texas Intermediate (WTI) crude futures were at $64.45 per barrel, up 40 cents, or 0.62 percent, from their previous settlement.

WTI is up more than 40 percent this year and Brent up more than 30 percent, on the back of a deal between the Organization of Petroleum Exporting Countries (OPEC) and its allies including Russia to limit their output by 1.2 million barrels per day starting January.

In June, the producer group and others will decide whether to continue to curb their production, although concerns have arisen over Russia’s willingness to stick with the cuts.

An unexpected fall in US crude inventories also boosted oil prices.

US crude inventories fell by 3.1 million barrels in the week ended April 12 to 452.7 million, compared with analysts’ expectations for an increase of 1.7 million barrels, according to data from the American Petroleum Institute (API) released on Tuesday.

“Crude oil prices continued its recent rise, as investors prepared themselves for a barrage of information from the US shale industry,” ANZ bank said in a note, pointing to the start of the US reporting season.

Official data on US production from the Energy Information Administration (EIA) is due to be released on Wednesday.

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