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.