Fundamental Comment

Oil rises more than 1% ahead of US stock data

Oil prices rise ahead of US stock data

Oil prices rose on Wednesday after sector data showed a decline in US crude oil stocks more than expected, reducing fears of oversupply, while senior US oil producers evacuated platforms in the Gulf of Mexico before an impending storm.

As of 09:28 GMT, the price of Brent's futures contract rose 1.82 percent to $65.31 a barrel, while U.S. crude oil futures rose to 59.08 a barrel, extending its advance for a second straight session.  

The US oil Institute's data released on Tuesday that crude oil stocks fell more than expected last week. According to the data, the crude stocks fell 8.1 million barrels in the week ended July 5 to 461.6 million, compared to analysts ' forecast of a 3.1-million-barrel decline.

The US Energy Information Department is scheduled to announce later in the day data on stockpiles and production in the United States over the past week.

Oil prices have been under pressure from concerns about global economic growth amid increased damage from the US-China trade war that lasted over the past year.

The pressure was offset by the reduction of production levels by OPEC and its allies by 1.2 million barrels per day (bpd) since the beginning of the year, where the extension of the agreement early this month until the end of March gave some support.   

Meanwhile, the dollar index, which measures the performance of the U.S. currency against a basket of major currencies, retreated to 96.972.

Eyes will focus today on Fed Chair Jerome Powell’s testimony before the House Financial Services Committee, and the Fed minutes for June meeting due thereafter.

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