Oil extends gain as US crude stockpiles seen falling

A good start: A worker is pictured on a floating production storage and offloading vessel operating off the coast of Rio de Janeiro, Brazil. Oil had its best start to a year in five years as Opec and its allies continue supply cuts to drain a global glut. — AFP

HONG KONG: Oil extended gains above US$62 a barrel before US government data forecast to show crude stockpiles declined for an eighth week and as political tensions simmer in Iran, Opec’s third-biggest producer.

Futures added as much as 1.3% in New York to the highest intraday level in more than three years. US inventories probably fell by 3.75 million barrels last week, according to a Bloomberg survey before an Energy Information Administration (EIA) report today.