Oil futures extended gains early Thursday, following a report that showed US crude stockpiles dropped for the second week amid fears of oil disruptions in Iraq, the home of the world`s fifth-largest proven oil reserves.
Crude inventories fell by 2.6 million barrels last week, the Energy Information Administration said in its weekly report on Wednesday, adding to signs that demand is picking up further amid the post-winter pop for the world`s largest economy.
As expected, the Organization of Petroleum Exporting Countries agreed, as expected, to maintain its production target at 30 million barrels a day.
Meanwhile, the geopolitical turmoil in Iraq continued to boost prices as Sunni militants consolidated and extended their control over the northern part of the country on Wednesday.
The Iraqi militants are aiming at the capital after seizing Mosul and Takrit, the hometown of Saddam Hussein threatening the strategic oil refining town of Baiki and pushing south toward Baghdad.
As of 03:08 a.m. ET:
- West Texas Intermediate for July delivery was up 0.35% at $104.77 a barrel on the New York Mercantile Exchange
- Brent for July delivery was up 0.65% $110.66 a barrel on the ICE exchange in London
- NYMEX Natural Gas was up 0.31% at $4.522 per million British thermal units