|
Crude stocks fell by about 2.4 million barrels, market sources
said, citing data from industry group American Petroleum
Institute (API) ahead of official data from the Energy
Information Administration at 1430 GMT.
Brent crude was up 48 cents, or 0.7%, to $72.74 a barrel at 0928
GMT, while West Texas Intermediate (WTI) U.S. crude gained 31
cents, or 0.5%, to $68.01.
"This morning relief comes from last night's API stats," said
Tamas Varga of oil broker PVM.
While outright prices gained, the discount of the prompt Brent
contract to the next month has deepened, a structure called
contango which indicates ample supply.
Brent is down about 15% this year as rising interest rates hit
investor appetite, while China's economic recovery has faltered
after several months of softer-than-expected consumption and
other data.
"For now, the market remains stuck with demand concerns
weighing," said Ole Hansen, head of commodity strategy at Saxo
Bank. "OPEC production cuts have helped prevent a deeper
setback."
"Overall, the commodity sector, including crude oil, is
suffering from risk adversity amid China growth worries and U.S.
data strength pointing to higher rates," he said.
European Central Bank President Christine Lagarde said on
Tuesday stubbornly high inflation will require the bank to avoid
declaring an end to rate hikes.
A rise in U.S. consumer confidence in June also led to market
concerns that the Federal Reserve would likely have to continue
raising interest rates.
Still, some analysts expect the market to tighten in the second
half of 2023 partly due to ongoing OPEC+ supply cuts and Saudi
Arabia's voluntary reduction for July.
(Additional reporting by Mohi Narayan; editing by Jason Neely
and David Evans)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
