Oil rebounds on U.S. stocks drawdown, declining OPEC compliance weighs | Reuters

SINGAPORE Crude oil prices bounced back on Wednesday as a decline in U.S. inventories underpinned the market, although a dip in compliance with OPEC efforts to reduce output capped gains.U.S. West Texas Intermediate crude CLc1 rose 48 cents, or 1 percent, to $48.14 a barrel by 0030 GMT (08:30 p.m. EDT). On Tuesday, the market slid 2.4 percent to its lowest close since March 21. Benchmark Brent LCOc1 futures gained 59 cents, or 1.2 percent to $51.05 a barrel.U.S. crude stocks fell last week, and both gasoline and distillate inventories also dropped, data from industry group the American Petroleum Institute showed on Tuesday.

Crude inventories fell by 4.2 million barrels in the week ended April 28 to 528.3 million barrels, compared with analyst expectations for a decrease of 2.3 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 215,000 barrels, API said.The U.S. government will release its inventory data on Wednesday at 10:30 a.m. (1430 GMT)

"The supply of crude oil continues to decline. This is evident in both spot and forward supply data," commodities brokerage Marex Spectron said in a note."Demand remains strong and in spite of lower refinery profitability we see increasing capacity utilization rates."

Production from the Organization of the Petroleum Exporting Countries (OPEC) fell for a fourth straight month in April, a Reuters survey found on Tuesday, as top exporter Saudi Arabia kept production below its target while maintenance and unrest cut production in exempt nations Nigeria and Libya.But more oil from Angola and higher UAE output than originally thought meant OPEC compliance with its production-cutting deal slipped to 90 percent from a revised 92 percent in March, according to Reuters surveys.Brent is trading close to its lowest level since late November, when OPEC agreed to cut supply. (Reporting by Naveen Thukral; Editing by Richard Pullin)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: May 03, 2017 06:45 AM

Also Watch

IPL 2018: Royal Challengers Bangalore eye revival against Chennai Super Kings as 'Cauvery Derby' comes back to life
  • Thursday, April 26, 2018 In the Kanjarbhat community, a campaign against 'virginity tests' is slowly gaining ground
  • Tuesday, April 24, 2018 It's A Wrap: Beyond the Clouds stars Ishaan Khatter, Malavika Mohanan in conversation with Parul Sharma
  • Monday, April 9, 2018 48 hours with Huawei P20 Pro: Triple camera offering is set to redefine smartphone imaging
  • Monday, April 16, 2018 Rajyavardhan Singh Rathore interview: Sports can't be anyone's fiefdom, we need an ecosystem to nurture raw talent

Also See