Daily Times

Brent crude oil futures rose above $60 a barrel for the first time in over a week on Wednesday after a data report showed a larger-than-expected drop in US crude inventories, but ongoing worries about a possible global recession capped gains. Brent crude had gained 32 cents, or 0.5%, to $60.35 a barrel by 0403 GMT, after settling 0.5% higher on Tuesday. US crude was up 25 cents, or 0.45%, at $56.38 a barrel. US crude oil stocks fell by 3.5 million barrels in the week to Aug. 16, data from industry group the American Petroleum Institute (API) showed on Tuesday. Analysts polled by Reuters had expected a fall of 1.9 million barrels. “Crude prices should see support from a bullish API stockpile report that could signal the largest Cushing draw since February 2018, if the EIA validates it,” said Edward Moya, senior market analyst at OANDA in New York. Inventory numbers from the government’s Energy Information Administration (EIA) are due at 10:30 a.m. EDT (1430 GMT) on Wednesday, and will be more closely watched than usual given the nearing of the end of peak US driving season, analysts said. “With Canadian heavy crude restrictions being extended, we should see US refiners … struggle to fill the void from lowered shipments from Mexico and Venezuela,” he said, referring to Canadian province of Alberta extending mandatory curtailments on crude production by an extra year. Tensions in the Middle East remained in focus as US Secretary of State Mike Pompeo said on Tuesday that the United States would take every action it can to prevent an Iranian tanker in the Mediterranean from delivering oil to Syria in contravention of US sanctions.