Oil prices rise as US stockpiles drop, Opec agrees meeting date(Update)


  • Business
  • Wednesday, 19 Jun 2019

Brent crude futuresdipped 20 cents, or 0.3 percent, to settle at $72.61 a barrel, while U.S. West Texas Intermediate (WTI) crude declined 43 cents to settle at $67.20 a barrel, with a 0.7 percent loss. (Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma. - Reuters filepic)

TOKYO: Oil prices rose over 1 percent on Thursday as official data showed U.S. crude stocks fell more than expected and as OPEC and other producers finally agreed a date for a meeting to discuss output cuts.

Brent crude futures had risen 82 cents, or 1.3%, to $62.64 by 0026 GMT. They dropped 0.5% on Wednesday.

U.S. West Texas Intermediate (WTI) crude futures were up 79 cents, or 1.5%, at $54.55 a barrel. WTI fell 0.26% in the previous session.

After swelling to near two-year highs, U.S. crude stocks fell by 3.1 million barrels last week, compared with analyst expectations for a draw of 1.1 million barrels, the Energy Information Administration (EIA) said. [EIA/S]

Refined products also posted surprise drawdowns due to a rise in refining and crude exports, as well as a drop in crude production.

Members of the Organization of the Petroleum Exporting Countries agreed to meet on July 1, followed by a meeting with non-OPEC allies on July 2, after weeks of wrangling over dates.

OPEC and its allies will discuss whether to extend a deal on cutting 1.2 million barrels per day of production that runs out this month.

Momentum for an agreement appeared to be building as the United Arab Emirates' energy minister told Al-Bayan newspaper that an extension is "logical and reasonable".

"Oil price volatility is likely to persist, but the upcoming OPEC meeting should serve to provide the markets with a reasonable backstop and will offer some much-needed respite for prices," said Stephen Innes, managing partner at Vanguard Markets in Bangkok.

Expectations the U.S. Federal Reserve could cut interest rates at its next meeting and confirmation that the chief U.S. trade negotiator will meet his Chinese counterpart before a meeting between President Donald Trump and Chinese President Xi Jinping next week are also supporting markets.

Tensions remain high in the Middle East after last week's tanker attacks, which boosted oil prices. Fears of a confrontation between Iran and the United States have mounted, with Washington blaming Tehran, which has denied any role.

A rocket attack on a site in southern Iraq used by foreign oil companies, including U.S. energy giant ExxonMobil, left three people wounded and threatened to further escalate U.S.-Iran tensions in the region. - Reuters

Earlier report:

Oil prices little changed despite US crude stock draw

NEW YORK: Oil futures were mostly steady on Wednesday as price support from a larger-than-expected decline in U.S. crude inventories was countered by a lull in equities.

Brent crude futures settled at $61.82 a barrel, shedding 32 cents, or 0.5%. U.S. West Texas Intermediate (WTI) crude futures settled at $53.76 a barrel, falling 14 cents, or 0.26%. On Tuesday, WTI had recorded its biggest daily rise since early January.

After swelling to near two-year highs, U.S. crude stocks fell 3.1 million barrels last week, compared with analysts' expectations for a draw of 1.1 million barrels, the Energy Information Administration (EIA) said. Refined products also posted surprise drawdowns due to a rise in refining and crude exports, as well as a drop in crude production.

Oil prices briefly turned positive after the EIA report.

"I think, overall, it was a positive report," said Phil Flynn, analyst at Price Futures Group in Chicago. "Even with the bullish report, after the big run-up yesterday, the market is hesitant to drive a lot higher."

A nearly flat day on Wall Street also limited oil prices, which often follow equities. [.N]

Equities held steady after the U.S. Federal Reserve's decision to hold interest rates steady, as expected, after concluding a two-day policy meeting on Wednesday. [nW1N22I01T]

"The crude oil market is correlating to that," said Bob Yawger, director of energy futures at Mizuho in New York. "I don't think it's more than a sentiment thing along those lines."

Tensions remain high in the Middle East after last week's tanker attacks, which boosted oil prices. Fears of a confrontation between Iran and the United States have mounted, with Washington blaming Tehran, which has denied any role.

Trump said he was prepared to take military action to stop Iran having a nuclear bomb but left open whether he would approve the use of force to protect Gulf oil supplies.

Oil markets, however, largely shrugged off a rocket attack on a site in southern Iraq used by foreign oil companies, including U.S. energy giant ExxonMobil.

Three people were wounded in the attack, which threatened to further escalate U.S.-Iran tensions in the region.

Members of the Organization of the Petroleum Exporting Countries agreed to meet on July 1, followed by a meeting with non-OPEC allies on July 2, after weeks of wrangling over dates.

OPEC and its allies will discuss whether to extend a deal on cutting 1.2 million barrels per day of production that runs out this month.- Reuters


oil , price , markets , Brent , West Texas Intermediate , WTI , stocks , draw , trade , economy ,

   

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