Oil prices ex­pe­ri­ence de­cline in Asian trade

The China Post - - MARKETS -

Oil prices were lower in Asia Thurs­day fol­low­ing a mixed U. S. energy re­port and af­ter the US Fed­eral Re­serve sig­naled it would keep its near- zero bench­mark in­ter­est rates un­changed for now, an­a­lysts said.

U. S. bench­mark West Texas In­ter­me­di­ate for July de­liv­ery fell 21 cents to US$ 59.71 while Brent crude for Au­gust was down 10 cents at US$ 63.77 in af­ter­noon trade.

The U. S. Depart­ment

of Energy’s

in- ven­tory re­port for the week to June 12 showed Wed­nes­day that crude re­serves fell 2.7 mil­lion bar­rels, the sev­enth straight weekly de­cline.

How­ever, crude sup­plies at the closely watched trad­ing hub in Cush­ing, Ok­la­homa, rose by 100,000 bar­rels.

The data also showed Amer­i­can oil pro­duc­tion at 9.59 mil­lion bar­rels per day, down a scant 21,000 from last week’s record high.

Deal­ers have been hop­ing that a draw­down of the United States’ bur­geon­ing re- serves dur­ing the sum­mer months, cou­pled with a slow­down in its shale out­put, could whit­tle down ex­cess global sup­plies.

A sur­plus of Amer­i­can stocks was one of the rea­sons oil prices col­lapsed by more than 50 per­cent be­tween June and Jan­uary.

Crude in­vestors are also di­gest­ing the Fed’s in­di­ca­tion on Wed­nes­day af­ter a two- day pol­icy meet­ing that it will main­tain near- zero in­ter­est rates for now and adopt a cau­tious and me­thod­i­cal ap­proach to rais­ing them later in the year.

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