Oil prices rose
on Thursday after U.S. data showed a surprise decline in inventories,
suggesting that a global glut may be ending after moves by OPEC to cut
production.
Benchmark
Brent crude oil LCOc1 was up 70 cents a barrel at $56.54 by 0855 GMT
(3:55 a.m. ET), recovering from a drop of 82 cents on Wednesday. U.S.
light crude CLc1 was 70 cents higher at $54.29 a barrel.
Both benchmarks are near the top of relatively narrow $4 ranges that have contained trade so far this year, reflecting a period of low volatility since the Organization of the Petroleum Exporting Countries and other exporters agreed to cut output.
OPEC and producers including Russia aim to reduce production by around 1.8 million barrels per day (bpd) in an attempt to drain an oversupply that has kept prices depressed for more than two years.
So far OPEC appears to be sticking to its deal but other producers, notably U.S. shale companies, have increased output, helping swell stocks in the United States, the world's biggest oil consumer.
Industry data on Wednesday showed U.S. crude inventories fell by 884,000 barrels in the week to Feb. 17 to 512.7 million, compared with analyst expectations for an increase of 3.5 million barrels.
Eleven non-OPEC oil producers that joined the OPEC deal have delivered at least 60 percent of promised curbs so far, OPEC sources said on Wednesday, higher than initially estimated.
Both benchmarks are near the top of relatively narrow $4 ranges that have contained trade so far this year, reflecting a period of low volatility since the Organization of the Petroleum Exporting Countries and other exporters agreed to cut output.
OPEC and producers including Russia aim to reduce production by around 1.8 million barrels per day (bpd) in an attempt to drain an oversupply that has kept prices depressed for more than two years.
So far OPEC appears to be sticking to its deal but other producers, notably U.S. shale companies, have increased output, helping swell stocks in the United States, the world's biggest oil consumer.
Industry data on Wednesday showed U.S. crude inventories fell by 884,000 barrels in the week to Feb. 17 to 512.7 million, compared with analyst expectations for an increase of 3.5 million barrels.
Eleven non-OPEC oil producers that joined the OPEC deal have delivered at least 60 percent of promised curbs so far, OPEC sources said on Wednesday, higher than initially estimated.
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