Oil rises on decline in U.S. crude stocks, Fed comments on economy

TOKYO, Nov 14 (Reuters) - Oil prices rose on Thursday,
extending gains from the previous session, as an industry report
showing a fall in U.S. crude stockpiles last week added to
positive comments by the U.S. Federal Reserve head on the U.S.
economy.
U.S. West Texas Intermediate crude CLc1 was up 20 cents,
or 0.4%, at $57.32 a barrel by 0111 GMT, after rising 0.6% on
Wednesday.
Brent futures LCOc1 were up 17 cents, or 0.3% at $62.54 a
barrel, having risen 0.5% in the previous session.
Federal Reserve Chair Jerome Powell said on Wednesday the
U.S. economy would see a "sustained expansion" with the full
impact of recent interest rate cuts still to be felt, boosting
hopes for increased demand for crude. Powell's "rosy view of the U.S. economy reinforces the view
that the Fed sees the economy is on a positive track," said
Stephen Innes, chief Asia market strategist at AxiTrader.
U.S. crude inventories fell by 541,000 barrels in the week
to Nov. 8 to 440 million, data from the American Petroleum
Institute, an industry group, showed on Wednesday, compared with
analysts' expectations for an increase of 1.6 million barrels.
API/S
Official data from the U.S. Energy Information
Administration is due at 11:00 a.m. EST (1600 GMT) on Thursday.
Both reports were delayed a day for the U.S. Veterans Day
holiday on Monday. EIA/S
Concerns have eased over a U.S. recession, although an
economic rebound is also not expected any time soon, according
to a Reuters poll of economists released on Thursday.
The poll also showed that economists believe the U.S.-China
trade war is unlikely to see a permanent truce over the coming
year, which may further impact global growth and demand for oil,
putting a cap on prices.
Still, OPEC Secretary General Mohammad Barkindo said global
economic fundamentals remained strong and that he remained
confident the United States and China would reach a trade deal.
The Organization of the Petroleum Exporting Countries (OPEC)
and other producers including Russia - grouping known as OPEC+ -
have been restraining production since January to try support
oil prices.