Asian oil prices up with lower U.S. stocks
Asian oil prices up with lower U.S. stocks
SINGAPORE (Reuters): Crude prices in Asia on Thursday were supported after recent U.S oil industry data showed lower crude and gasoline stocks.
September New York Mercantile Exchange (NYMEX) crudes on the after-hours ACCESS system in Asia were last trading at $20.53, nine cents higher from the closing level in New York.
In regular NYMEX trade on Wednesday, crude futures had settled 44 cents stronger at $20.44.
On the Singapore International Monetary Exchange (SIMEX), September Brent crude was traded at $19.65, up from its close at $19.63 on London's International Petroleum Exchange (IPE) on Wednesday.
Support for prices came from data released by the U.S. Department of Energy (DOE) on Wednesday, where crude and gasoline inventories were reported to have fallen in the week that ended July 30.
The DOE reported crude stocks lower by 3.4 million barrels and gasoline by 1.2 million barrels.
The statistics released by the DOE were more supportive than earlier data released by the American Petroleum Institute, but traders said they had more confidence in the DOE numbers.
The decline in DOE stocks, coupled with news that in August, Russia was halting gasoline exports and cutting diesel and fuel oil exports to 30 percent of refinery output, bolstered crude prices.
Russia announced on Wednesday the decree on oil exports, aimed at increasing domestic oil supplies.
Crude oil prices are currently fully double the historic lows touched at the start of the year, as the OPEC agreement in March to reduce oil production has succeeded in easing the global supply glut.
Crude prices touched 20-year highs last week, before slipping slightly as speculators cashed in gains.
OPEC members have signaled intentions to maintain the supply curbs accord until it runs out at end March next year, although some traders said they were waiting to see if the next OPEC meeting on September 22 would result in any alterations to the deal.
Overall, traders and analysts said market confidence in OPEC's high rate of compliance to the output cut agreement was the main factor keeping prices firm.