Oil prices edge higher after US stockpiles fall

Oil prices extended gains on Thursday after Energy Information Administration’s (EIA) latest data revealed a decline in US stockpiles.

Brent crude was up 0.7 percent at $52.15 per barrel (bbl), in early trading hours in Dubai. The international benchmark saw its first increase in seven days yesterday, when it gained 1.7 percent.

WTI crude last traded up 0.6 percent at $49.14/bbl.

EIA data for week ending March 10 showed that the US inventories fell more than 200,000 barrels from the week earlier to 528.2 million barrels – the first decline after nine consecutive weeks.

Rising US supply and rig count has been weighing down crude price, pulling them to a four-month low earlier this week and below the critical support level of $50/bbl, despite positive indicators from OPEC on its output curb deal, KAMCO Research said in its oil report released Wednesday.

“We expect prices to remain range bound in the near term with initial decline on the back of shale developments being offset by higher compliance to the production cuts further supported by the upcoming summer demand in the Gulf region,” the report said.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com