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.
