Oil prices rise

OIL prices rose for a second day yesterday after data showed US crude inventories fell more than expected, easing worries about oversupply that have dragged on markets in recent weeks.

Brent crude was up 40 cents, or 0,55 percent, at $73,84 a barrel by 1310 GMT, after gaining 0,5 percent on Tuesday. US light crude was 20 cents higher at $68,72, having risen nearly 1 percent in the previous session.

US crude and fuel stockpiles fell more than expected last week, industry group the American Petroleum Institute (API) reported late on Tuesday.

“The overnight API figures set a positive tone for oil prices, with draws across the main inventory categories from crude to a sizeable decline in gasoline, which is seasonally the focal point as the driving season ramps up,” Harry Tchilinguirian, oil strategist for French bank BNP Paribas, told Reuters Global Oil Forum.

US crude inventories fell 3,2 million barrels in the week to July 20 to 407,6 million barrels, the API said, compared with expectations for a decrease of 2,3 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 808 000 barrels. Gasoline stocks fell by 4,9 million barrels, compared with analyst expectations in a Reuters poll for a 713 000-barrel drop.

“The dollar is very weak this morning,” said Tamas Varga, an analyst at London brokerage PVM Oil Associates.

“I believe that this is also playing a part in why the prices are up.” Reuters.