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Oil prices ahead of U.S. stockpile data

Oil prices ahead of U.S. stockpile data

Oil prices rallied Wednesday ahead of the release of U.S. stockpile data.
The rally came a day after oil settled at a seven-month low amid signs of rising global supplies.
By midafternoon in Europe, light sweet crude for November delivery rose 36 cents to US$59.04 in electronic trading on the New York Mercantile Exchange.
Nymex crude oil futures have tumbled about 25 percent in less than two months. They have fallen more than US$4 this week, settling at $58.68 a barrel Tuesday, the lowest close since Feb. 16.
November Brent crude fell 50 cents to US$58.93 a barrel on London's ICE Futures exchange.
In other Nymex trading, heating oil futures rose 1.45 cents to US$1.6684 a gallon while gasoline futures were up 2.13 cents to US$1.4780 a gallon. Natural gas futures rose 14.1 cents to US$5.900 per 1,000 cubic feet.
Later Wednesday, the U.S. Energy Department will release petroleum inventories data for the week through Sept. 29. Analysts predict that crude stocks dropped about 700,000 barrels, but that gasoline stocks rose 1.2 million barrels and distallate stocks rose 1.3 million barrels.
"If the numbers are as good as expected it remains to be seen whether the bearish sentiment extends further," said Paul Harris, an analyst at Bank of Ireland Global Markets in Dublin.
"There is certainly a lot of focus on fundamental supply," said Mark Pervan, commodities analyst at Daiwa Securities in Melbourne, Australia. "Supply is ample and the speculative fear of supply disruption has eased."
The U.S. Department of Energy said last week that U.S. inventories of crude oil stood at 324.8 million barrels, or 5 percent more than last year; inventories of distillate, which includes heating oil, stood at 151.3 million barrels, or 15 percent above year ago levels.
With economic growth slowing and oil supplies rising, energy markets have become less jittery about geopolitical tensions, such as the diplomatic standoff between Iran and the West over Tehran's nuclear ambitions. For much of the year, fear about potential sanctions against Iran, and possible retaliatory actions by OPEC's No. 2 supplier, had gripped the market.
The conclusion of a mild Atlantic hurricane season has also eased fears of disruptions to Gulf of Mexico oil and natural gas production.


Updated : 2021-05-16 15:30 GMT+08:00