Oil prices gain after fall in US crude stockpiles

September 12, 2019

TOKYO: Oil prices traded higher on Wednesday after an industry report said US crude stockpiles fell last week by more than twice the amount that analysts in a Reuters poll had forecast.
Brent crude futures rose 51 cents, or 0.6 per cent, to $62.89 a barrel by 04:05 GMT, while West Texas Intermediate (WTI) futures were up 54 cents, or 0.9 per cent, to $57.94 a barrel.
Prices had ended lower on Tuesday, squeezed by speculation of sanctions-hit Iranian crude returning to the market following US President Donald Trump’s move to fire national security adviser John Bolton, a noted Iran policy hawk.
But they rebounded after American Petroleum Institute (API) data late on Tuesday showed US crude oil and gasoline stocks fell last week, while distillate stocks built.
“Oil should remain supported in Asian trading, mostly supported by the overnight API crude inventory data,” said Jeffrey Halley, senior market analyst at OANDA.
The API numbers had US crude inventories down by 7.2 million barrels in the week ended September 6 to 421.9 million.

Omanobserver