3 months ago
Commodities

Oil Prices Gain amid Drop in U.S. Crude Stockpiles

Investing.com - Oil prices gained on Thursday in Asia after the Energy Information Administration (EIA) reported a drop in U.S.

Investing.com - Oil prices gained on Thursday in Asia after the Energy Information Administration (EIA) reported a drop in U.S. crude stockpiles.

Crude Oil WTI Futures for January delivery gained 0.27% to $51.34 per barrel at 12:37 AM ET (05:37 GMT) on the New York Mercantile Exchange.

London’s Intercontinental Exchange showed that Brent Oil Futures for February delivery gained 0.5% to $60.45 a barrel.

U.S. crude inventories fell by 1.2 million barrels in the week to Dec. 7, the EIA reported. However, the decline was less than expected, as markets previously forecasted a decrease of 3 million barrels.

Crude oil prices have also been supported by OPEC-led supply curbs announced last week. The Saudi-dominated Organisation of the Petroleum Exporting Countries and its Russian-led allies announced a deal to cut their combined supplies by 1.2 million bpd over the next six months to clear a global oil glut and pull prices higher.

In a separate outlook report, the OPEC said 2019 demand for its crude would fall to 31.44 million barrels per day, 100,000 bpd less than predicted last month and 1.53 million less than it currently produces.

With less than three weeks to the end of 2018, WTI remains down about 15% on the year and some 32% lower from four-year highs of nearly $77 per barrel hit in early October. Brent is down about 10% on the year and some 31% lower from four-year highs of nearly $87 per barrel hit two months ago.