Published: Sun, April 08, 2018
Finance | By Gustavo Carr

Oil climbs with equities, Saudi Arabia hikes crude prices

Oil climbs with equities, Saudi Arabia hikes crude prices

Futures in NY slipped 0.4% after climbing 0.8% on Tuesday.

"OPEC's production cuts are working and we are seeing a steady decrease in a global supply glut", Ahn Yea Ha, a commodities analyst at Kiwoom Securities, said by phone. Total volume traded was about 53% below the 100-day average.

Front-month London Brent crude for June delivery was up 27 cents, or 0.4 percent, at $68.29, having ended down 10 cents.

Brent crude futures were down 1.81 per cent at $66.89 per barrel at the time of writing, while the United States benchmark West Texas Intermediate (WTI) was down 1.89 per cent at $62.31 per barrel.

Oil prices rose on Thursday, buoyed by the USA government data showing a surprise drawdown in crude stockpiles and an easing of tensions over a trade row between the United States and China.

At 0611 GMT, May WTI crude oil is trading $63.26, down $0.26 or -0.38% and June Brent is at $67.82, down $0.30 or -0.44%. Prices erased most of their losses on Wednesday after data showed supplies stored in US tanks shrank the most since January, in contrast to a forecast for a 2 million-barrel gain.

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Lending some price support to oil was a comment on Tuesday by Russian Energy Minister Alexander Novak, referring to earlier comments by Saudi Arabia that talks were taking place on a long-term market co-operation deal between Opec and non-Opec producers led by Russia.

US crude inventories fell by 4.6 million barrels last week, compared with analysts' expectations for an increase of 246,000 barrels, EIA data showed on Wednesday.

Over the past four weeks, motor gasoline product supplied averaged about 9.3 million barrels per day, up by 0.4 percent from the same period a year ago. Inventories are forecast to have risen by 2 million barrels, according to a Bloomberg survey.

With the group reaching an unprecedented degree of compliance with its current output target, Venezuela contributed to a further decline in supplies in March.

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