Oil Gain Spurred by Political Risk Sustained by U.S. Supply Drop
Wednesday, 18 April 2018 13:28 WIB |
Signs of waning U.S. oil inventories are helping sustain price gains after supply threats stemming from geopolitical tensions lifted crude last week to the highest level since late 2014.
Futures in New York rose as much as 0.9 percent after climbing 0.5 percent Tuesday. An industry group was said to report that U.S. crude stockpiles declined last week, before government data forecast to show a gain Wednesday. The International Energy Agency warned rising prices risk weakening global oil-demand growth and spurring output, including from American shale fields.
Oil last week rose to the highest level in more than three years as geopolitical tensions surrounding Syria, Saudi Arabia, Iran as well as the U.S. and Russia raised fears of supply disruptions in the energy-rich Middle East. While the frictions have eased slightly this week, the Organization of Petroleum Exporting Countries and allies seem determined to persist with their deal to cut production and curb a glut.
West Texas Intermediate for May delivery climbed as much as 58 cents to $67.10 a barrel on the New York Mercantile Exchange, and traded at $67.05 at 1:21 p.m. in Singapore. The contract climbed 30 cents to $66.52 on Tuesday. Total volume traded was about 27 percent below the 100-day average.
Brent for June settlement added 53 cents to $72.11 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude traded at a $5.07 premium to June WTI.
Source : Bloomberg