Oil Stock Markets
Oil prices rose on Wednesday amid a share market recovery and supported
by a report that U.S. crude inventories fell last week, although
analysts warned that soaring U.S. output and a seasonal demand drop
could soon weigh on crude.
Brent crude futures were at $67.44 per barrel at 0235 GMT, up 58 cents, or 0.9 percent, from the previous close.
U.S. West Texas Intermediate (WTI) crude futures were at $64.04 a barrel. That was up 65 cents, or 1 percent, from their last settlement.
The higher oil futures came after stock markets recovered some of their steep losses of previous days.
The market was supported by a report by the American Petroleum Institute (API) saying that U.S. crude inventories fell by 1.1 million barrels in the week to Feb. 2 to 418.4 million barrels, traders said.
A group of oil producers around OPEC and Russia have been withholding supplies since last year in order to tighten supplies and prop up prices. The cuts are set to last through 2018.
Other analysts, however, warned of the risk of lower oil prices, both from financial markets and because of weaker seasonal demand.
In the short-term, demand is expected to slow due to refinery maintenances at the end of the northern hemisphere winter season.
Looming over oil markets is rising U.S. crude production, which has already soared by 18 percent to almost 10 million barrels per day (bpd).
The U.S. Energy Information Administration (EIA) expects U.S. output to rise to an average of 10.59 million bpd in 2018, and then 11.18 million bpd by 2019.
That would be more than top producer Russia, which pumped on average 10.98 million bpd out of the ground in 2017.
Brent crude futures were at $67.44 per barrel at 0235 GMT, up 58 cents, or 0.9 percent, from the previous close.
U.S. West Texas Intermediate (WTI) crude futures were at $64.04 a barrel. That was up 65 cents, or 1 percent, from their last settlement.
The higher oil futures came after stock markets recovered some of their steep losses of previous days.
The market was supported by a report by the American Petroleum Institute (API) saying that U.S. crude inventories fell by 1.1 million barrels in the week to Feb. 2 to 418.4 million barrels, traders said.
A group of oil producers around OPEC and Russia have been withholding supplies since last year in order to tighten supplies and prop up prices. The cuts are set to last through 2018.
Other analysts, however, warned of the risk of lower oil prices, both from financial markets and because of weaker seasonal demand.
In the short-term, demand is expected to slow due to refinery maintenances at the end of the northern hemisphere winter season.
Looming over oil markets is rising U.S. crude production, which has already soared by 18 percent to almost 10 million barrels per day (bpd).
The U.S. Energy Information Administration (EIA) expects U.S. output to rise to an average of 10.59 million bpd in 2018, and then 11.18 million bpd by 2019.
That would be more than top producer Russia, which pumped on average 10.98 million bpd out of the ground in 2017.
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