The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Oil extended gains toward $46 a barrel as US industry data showed crude and gasoline stockpiles declined. Futures advanced as much as 2.2 percent in New York after rising 1.8 percent in the previous two sessions. Crude inventories fell by 8.13 million barrels last week, the American Petroleum Institute was said to report. If the decline is replicated in government data Wednesday, it would be the biggest decrease since September. Gasoline supplies shrank by 801,000 barrels, the API said.
Oil remains in a bear market amid concern expanding global supply will offset curbs by the Organization of Petroleum Exporting Countries and its partners. The Energy Information Administration cut its estimate for 2018 US production to below 10 million barrels a day, the first time the government agency has lowered its forecast since it started making the projections in January.
“The wave of optimism is gathering strength this morning after the API reported a sharp drawdown in US fuel supplies,†said Stephen Brennock, an analyst at PVM Oil Associates Ltd. in London.
West Texas Intermediate for August delivery added as much as 98 cents to $46.02 a barrel on the New York Mercantile Exchange, and was at $45.92 at 9:27 a.m. in London. Total volume traded was about 12 percent above the 100-day average. Prices increased 64 cents to $45.04 on Tuesday.