Crude posts further gain in Asia after suprise USA stocks draw

  • Crude posts further gain in Asia after suprise USA stocks draw

Crude posts further gain in Asia after suprise USA stocks draw

The projection is four times higher than in November, when the group announced a production cut to try and re-balance oversupplied world markets. "U.S. oil production surpassed expectations in terms of an early bottoming and swift uptick, and is set to expand further based on the latest drilling momentum", said Norbert Ruecker, head of macro and commodity research at Julius Baer.

An expectation of a balancing market from OPEC and decent economic expectations from Europe helped drive a rally in crude oil prices Thursday.

The announcement will likely boost to oil prices, which yesterday jumped on reports from the American Petroleum Institute and the Energy Information Administration, which both estimated USA crude oil inventories to have fallen by more than 5 million barrels in the week to May 5.

Gasoline demand rose by 252,000 barrels a day, bringing the four-week average closer to levels at this time past year after a string of data showing weekly consumption declines.

United States light crude oil was $1.43 higher at $47.30 a barrel.

Brent crude futures, the Global benchmark for oil prices, were at $49.37 per barrel at 0252 GMT on Tuesday, down from a high of $49.60 earlier in the day and near their last close.

Brent crude futures, the global benchmark for oil prices, were at $50.33 per barrel at 0039 GMT on Thursday, up 11 cents, or 0.2 percent, from their last close. "Adding to the positive tone was the reduction in imports, which fell back to their long-term average... a sign of the current Opec production cuts beginning to impact exports", he added. API had reported a build in USA gasoline stockpiles on Tuesday.

The EIA now estimates USA commercial crude oil inventories declined by 7.4 million barrels during April, compared with an average increase of 7.4 million barrels over the past five years. At 522.5 million bbl, crude stocks were the lowest since February.

The EIA forecast U.S. oil demand for 2017 to rise 290,000 bpd, up from its previous forecast for a 250,000 bpd increase.

Elsewhere, investors continued to monitor comments from energy ministers, after Saudi oil chief Khalid Al-Falih said Monday, that he was "confident the agreement will be extended into the second half of year and possibly beyond".

The Energy Information Administration said domestic output will climb to a record 9.96 million barrels a day in 2018, up from 9.9 million barrels projected last month, according to the agency's monthly Short-Term Energy Outlook released Tuesday.