Oil prices traded near its highest level since October after the industry data revealed a drop in crude inventories for a second week in the US, the world’s biggest oil consumer.
The US crude stockpiles declined by 7.5 million barrels last week, data from the American Petroleum Institute confirmed. The government data which is expected to be released today is forecasted to show a drop in supplies by 3 million. Meanwhile in Libya, the three eastern ports are expected to reopen by December 15, the head of Libya’s energy protection force confirmed.
“The run of inventory increases had the market rattled, but it now appears to be reversing and the focus is coming back to global growth numbers,” said Michael McCarthy, chief strategist at CMC Markets in Sydney. “The outlook is for a test of higher levels for crude.”
West Texas Intermediate for January delivery came in at $98.49 per barrel on the New York Mercantile Exchange as of 2:30pm in Singapore; it climbed $1.17 to $98.51 yesterday; reaching its highest close since October 28.
The European benchmark Brent for January settlement climbed up by 5 cents at $109.43 per barrel on the ICE Futures Europe exchange. Brent crude was at a premium of $10.94 to WTI.
Oil Prices – US Stockpiles
Last week, WTI rose 5.3% higher, the highest in five months, while the US crude inventories booked its first drop in 11 weeks and TransCanada Corp announced its plans to begin some of its Keystone pipelines to the Gulf Coast from Cushing, the delivery spot for Nymex futures.
US gasoline stockpiles added 6.27 million barrels in the seven days through December 6, reports from the American Petroleum Institute confirmed. A report from the Energy Information Administration is forecasted to show a gain of 2 million, according to analysts.
Distillate supplies, including diesel and heating oil, added 1.8 million barrels, API reports confirmed.
Oil Prices – Libya
Brent crude rose for a second month in November as the turmoil in Libya reduced production. Libya is a member of the Organization of Petroleum Exporting Countries (OPEC) and the holder of the largest oil reserves in Africa.
The eastern ports, Es Sider, Ras Lanuf and Zueitina are expected to reopen this month, the head of the Petroleum Facilities Guard, Idris Bukhamada confirmed over the phone from Ajdabiya yesterday.
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