Please try another search
Investing.com - Crude oil prices gained in Asia on Wednesday as investors eyed a drop in U.S. stocks.
The American Petroleum Institute's weekly inventory report showed a drop of 1.2 million barrels last week for crude, though refined products data was not available.
On the New York Mercantile Exchange, WTI crude for November delivery rose 0.64% to $48.79 a barrel.
Ahead, the U.S. Department of Energy will release its own estimates Last week, it said U.S. crude stockpiles rose by 4.0 million barrels for the week ending on Sept. 25, significantly above estimates for a 0.5 million draw. At 457.9 million barrels, U.S. crude inventories remain near its highest level at this time of the year in at least 80 years.
Overnight, U.S. crude futures surged as much as 5% on Tuesday before paring earlier gains late in the session, as investors continued to react to news that Russia and Saudi Arabia have met recently to discuss the downturn in global oil prices with further talks potentially on the forefront.
On the Intercontinental Exchange (ICE), Brent crude for November delivery also rose sharply, surging above $51 a barrel for the first time since Sept. 4. Brent crude traded between $48.87 and $51.99, before settling at $51.89, up $2.66 or 5.38% on the day. The spread between the international and U.S. domestic benchmarks of crude stood at $3.35, above Monday's level of $3.05 at the close of trading.
Energy traders continued to digest comments from Russian energy minister Alexander Novak that his nation will continue to consult with Saudi Arabia on ways to help stabilize the global energy market.
Crude prices are down by more than 50% since OPEC roiled global markets last November with a strategic decision to leave its production ceiling unchanged above 30 million barrels per day, in an effort to regain global market share. Russia, which is among the top three oil producers in the world, has reportedly met with Saudi Arabia at least twice in the last six months to confer on a host of major issues impacting global energy prices.
Earlier this summer, Russian oil production surged to an all-time post-Soviet Union high of 10.75 million bpd.
Elsewhere, the U.S. Energy Information Administration (EIA) forecasted that global supply next year will rise to 95.98 million bpd, a level 0.1% lower than its estimates in September. In its October Short-Term Energy Outlook, the EIA also said that demand is expected to rise 270,000 bpd to 95.2 million, amid stronger projections for Chinese demand growth. The forecasts represent a 0.3% increase from the EIA's demand projections in September.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.