Oil prices up ahead of US stock­piles re­port

The China Post - - BUSINESS INDEX & -

Oil prices rose in Asia Wed­nes­day as deal­ers pre­dicted that the latest U.S. crude stock­piles and pro­duc­tion data will point to­wards up­beat de­mand in the world’s top crude con­sumer, an­a­lysts said.

U.S. bench­mark West Texas In­ter­me­di­ate for Septem­ber de­liv­ery gained 45 cents to US$46.19 while Brent crude for Septem­ber was up 48 cents to US$50.47 in af­ter­noon trade. Prices had skid­ded for three con­sec­u­tive ses­sions be­fore ris­ing mod­estly on Tues­day ahead of the U.S. Energy In­for­ma­tion Ad­min­is­tra­tion’s re­lease of the latest U.S. stock­piles fig­ures later Wed­nes­day.

“We should be see­ing drops to U.S. crude pro­duc­tion. This should help sup­port the mar­ket in the longer run,” said Daniel Ang, in­vest­ment an­a­lyst at Phillip Fu­tures in Sin­ga­pore.

Last week’s data showed crude in­ven­to­ries slid to 459.7 mil­lion bar­rels in the week to July 24, the low­est level since March. Pro­duc­tion stood at 9.41 mil­lion bar­rels a day dur­ing the same pe­riod, the slow­est pace in more than two months.

A dip in U.S. crude in­ven­to­ries typ­i­cally in­di­cates strong de­mand in the coun­try, the world’s top crude con­sumer and sec­ond largest energy con­sumer af­ter China.

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