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Oil prices extend rally after surprise fall in U.S. stocks

Published 02/10/2021, 09:38 AM
Updated 02/10/2021, 09:40 AM
© Reuters.
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TOKYO, Feb 10 (Reuters) - Oil prices rose again on
Wednesday, extending their more than week-long rally after
industry data showing a fall in U.S. crude oil stocks added to
optimism about an expected rise in global fuel demand.
Brent crude LCOc1 was up by 11 cents, or 0.2%, at $61.20
by 0110 GMT after rising nearly 1% on Tuesday, when it touched a
13-month high. U.S. crude CLc1 added 2 cents to $58.28.
Crude inventories fell by 3.5 million barrels in the week to
Feb. 5 to about 474.1 million barrels, data from the American
Petroleum Institute showed on Tuesday. API/S
That compared with analysts' expectations in a Reuters poll
for an increase of 985,000 barrels. Official Energy Information
Administration (EIA) data is due at 1530 GMT on Wednesday.
"A reading similar to the one reported by the API would
likely continue to provide support to the market," ING Economics
said in a note.
Crude oil stocks at the Cushing, Oklahoma, delivery point
dropped by 1.4 million barrels, API said.
Still, inventories of gasoline rose, gaining by 4.8 million
barrels, compared with analysts' forecasts in a Reuters poll for
a build of 1.8 million barrels. Official data is due later on
Wednesday.
Oil prices have rallied since November as governments kicked
off vaccination drives for COVID-19, while putting in place
large stimulus packages to boost economic activity.
The world's biggest exporter, Saudi Arabia, is unilaterally
reducing supply in February and March, adding to cuts agreed by
other members of the Organization of the Petroleum Exporting
Countries (OPEC) and their allies.
Some analysts are now forecasting there will be a supply
deficit in 2021 as more populations get vaccinated and start
going away on trips and working in offices, potentially boosting
fuel demand.

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