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Oil prices rise more than 1% ahead of weekly supply report

Published 07/07/2016, 09:43 AM
Updated 07/07/2016, 09:43 AM
© Reuters.  Oil prices rise sharply ahead of weekly supply report

Investing.com - Oil prices added to strong overnight gains in North American trade on Thursday, as market players looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products.

Crude oil for August delivery on the New York Mercantile Exchange jumped 68 cents, or 1.43%, to trade at $48.11 a barrel by 13:42GMT, or 9:42AM ET, after rising 83 cents, or 1.78%, a day earlier.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery tacked on 68 cents, or 1.39%, to $49.48. On Wednesday, London-traded Brent futures rose 84 cents, or 1.75%.

The U.S. Energy Information Administration will release its weekly report on oil supplies at 15:00GMT, or 11:00AM ET, amid expectations for a drop of 2.3 million barrels.

Gasoline stockpiles are expected to decline by 353,000 barrels while stocks of distillates, which include heating oil and diesel, are forecast to increase by 31,000 barrels, according to analysts.

The report comes out one day later than usual due to the Independence Day holiday in the U.S. on Monday.

After markets closed Wednesday, the American Petroleum Institute, an industry group, said that U.S. oil inventories fell by 6.7 million barrels in the week ended July 1.

Signs of a potential recovery in U.S. drilling activity remained in focus. According to oilfield services provider Baker Hughes, the number of rigs drilling for oil in the U.S. rose by 11 last week to 341, marking the fourth increase in five weeks.

The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.

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Latest comments

Well, for the next days the oil prices will fall for sure. . It's a good time to notice the loss now, increase will be surely noticed starting with the 1st of next month only..
Well, for the next days the oil prices will fall for sure. . It's a good time to short now, increase will be noticed starting with the 1st of next month only..
but how come? Oil is running at a loss right now, despite failures in oil inventories. I wonder what becomes of oil when all producers are back in full speed.
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