Tue, 14 Jul 2020

Oil prices rise after U.S. inventory drop

04 Jun 2020, 07:18 GMT+10

NEW YORK, June 3 (Xinhua) -- Oil prices rose on Wednesday after data showed a weekly drop in U.S. crude stockpiles.

The West Texas Intermediate (WTI) for July delivery rose 48 cents to settle at 37.29 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery gained 22 cents to close at 39.79 dollars a barrel on the London ICE Futures Exchange.

Prices for WTI and Brent crude marked their highest since March 6, according to Dow Jones Market Data.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 2.1 million barrels during the week ending May 29, the Energy Information Administration reported Wednesday. Analysts polled by S&P Global Platts had forecast an average climb of 3.5 million barrels.

Traders also awaited a decision concerning major oil producers' next move on output cuts.

There were reports that the Organization of the Petroleum Exporting Countries and others including Russia, known as OPEC+, are mulling extending their current production cuts beyond the end of June. However, doubts emerged about the timing of the OPEC+ meeting and scale of a potential extension to the pact.

OPEC+ agreed in April to slash output by 9.7 million barrels per day for May and June as the COVID-19 pandemic ravaged demand. Those cuts are meant to be eased to 7.7 million barrels a day from July through the end of 2020.

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