Oil Edges Up as U.S. Supplies Ease
Oil prices edged up in Asia Thursday following U.S. data showing a drop in inventories and tracking gains across regional markets, while traders await central bank policy meetings in Europe and Japan.
The U.S. Energy Information Administration said stockpiles fell 2.3 million barrels last week, a ninth-straight drop and offsetting a surprise increase in gasoline supplies during the peak U.S. summer driving season.
At about 0730 GMT, U.S. benchmark West Texas Intermediate was up 19 cents, or 0.42 percent, at $45.94, while Brent crude rose 20 cents, or 0.42 percent, to $47.37.
“The broad trend of what we’re seeing in the EIA report is healthy for the market,” Angus Nicholson, a markets analyst at IG Ltd. in Melbourne, told Bloomberg News.
“Oil appears to be on the right path toward rebalancing, toward a more sustainable market and the price level is reflecting that.”
The gains extended a pick-up Wednesday that came soon after the energy report was released.
Thursday's advance was in line with a broad uptick across equities markets in Asia, which fuelled optimism about the outlook for the global economy as central banks and governments plan stimulus measures.
The European Central Bank will meet Thursday and while it is not expected to make any announcement yet, traders are hoping its boss Mario Draghi will promise to provide economies back-up from any caused by Britain's vote last month to leave the EU.
That will be followed next week by a gathering of policymakers at the Bank of Japan, with speculation rife that it will further ease monetary policy while the government plans its own spending surge worth a reported 20 trillion yen ($186 billion).
Crude prices have fluctuated between $44 and $52 per barrel in the past month, after falling below $30 in February on the back of the world supply glut and weak demand.
Source: Agence France Presse
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