Oil prices climb after API data shows surprise drop in US stocks

Crude oil storage tanks are seen in an aerial photograph of the Cushing Oil Hub in Cushing, Oklahoma, U.S., April 21, 2020. REUTERS/Drone Base

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  • API data shows US crude, fuel stocks falling – sources
  • Iran nuclear talks resume Tuesday in Vienna
  • Governments are looking for ways to tackle high oil prices
  • Macron calls for calm on the situation in Ukraine

SINGAPORE, Feb 9 (Reuters) – Oil prices climbed on Wednesday after two losing sessions as industry data showed an unexpected drop in U.S. crude and fuel inventories, offsetting worries about a possible rise in oil prices. supplies from Iran.

Brent crude futures rose 41 cents, or 0.5%, to $91.19 a barrel at 0422 GMT, while U.S. West Texas Intermediate crude was up $89.74 a barrel. of 38 cents, or 0.4%.

“Undersupply is the key factor driving up the price of oil,” said CMC Markets analyst Tina Teng.

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U.S. inventories of crude, gasoline and distillates fell last week, market sources said, citing figures from the American Petroleum Institute on Tuesday. Crude stocks fell 2 million barrels, according to API, while analysts had expected a 400,000-barrel increase. [nL4N2UJ3MH]

More data from the US EIA will be available at 10:30 a.m. EST (1530 GMT).

Still, worries about a possible Iranian nuclear deal that could release more oil to world markets have weighed on prices.

Brent and WTI fell about 2% on Tuesday, down for a second consecutive session, as Washington resumed indirect talks with Iran to revive a nuclear deal. Such a deal could lift US sanctions on Iranian oil and quickly supply the market, although a number of vital issues still need to be resolved. Read more

“With the ongoing negotiations, the price of oil is expected to run out of steam next week, despite the rise we saw today,” Teng said, adding that there has also been some profit taking among investors. who became cautious after prices. reached heights of more than 7 years.

Oil prices near $100 a barrel could also attract more production to the United States. The Energy Information Administration expects U.S. crude production to increase by 770,000 barrels per day to 11.97 million bpd in 2022.

Meanwhile, governments from the United States to Japan are looking for ways to combat high oil prices as inflation soars. Read more

In Europe, concerns over Ukraine eased when French President Emmanuel Macron said he believed steps could be taken to de-escalate the crisis after a meeting with Russian President Vladimir Putin and called on all parties to stay calm. Read more

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Reporting by Florence Tan; edited by Richard Pullin and Gerry Doyle

Our standards: The Thomson Reuters Trust Principles.

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