Singapore — Crude oil futures were marginally higher during mid-morning trade in Asia Wednesday amid a bullish report on last week's US crude inventory data, while ongoing concerns over global demand and growth capped price gains.
Not registered?
Receive daily email alerts, subscriber notes & personalize your experience.
Register NowAt 10:30 am in Singapore (0230 GMT), ICE Brent October futures were up 16 cents/b (0.27%) from Tuesday's settle at $60.19/b, while the new front-month NYMEX October light sweet crude futures contract was 12 cents/b (0.21%) higher at $56.25/b.
US crude inventories fell 3.5 million barrels in the week ended August 16, according to analyst reports quoting data released by the American Petroleum Institute late Tuesday.
Analysts surveyed Monday by S&P Global Platts had been expecting a 3.1 million-barrel draw.
The API report for product inventories was mixed, with US gasoline stocks falling 400,000 barrels in the week while distillate inventories rose 1.8 million barrels, analysts said.
More definitive data on last week's US inventory levels is due for release by the US Energy Information Administration later Wednesday.
"The API crude draw may signal an even bigger draw from the EIA," said Price Futures Group senior market analyst Phil Flynn in a note.
Signs of supply tightness were emerging elsewhere in the market, with Iranian crude exports falling to about 100,000 b/d in July from around 2.5 million b/d a year earlier, the US Department of State's special representative for Iran, Brian Hook, said Tuesday.
"We have effectively zeroed out Iran's export of oil," Hook said during a press briefing in New York. "I can't overstate the significance of this accomplishment."
Market participants however remain concerned about the progress of trade talks between the US and China and weaker global economic data.
"It remains to be seen if that level [of crude supply] can be sustained, given that the global economy is currently fraught with multiple uncertainties," OCBC Bank analysts said in a note.
As of 0230 GMT, the US Dollar Index was up 0.01% at 98.06.
--Avantika Ramesh, avantika.ramesh@spglobal.com
--Edited by Wendy Wells, wendy.wells@spglobal.com