Oil prices rose on Wednesday, recovering from six-month lows hit
the previous day, as a larger-than-expected drop in U.S. oil and
gasoline stocks reminded investors that demand remains firm, if
overshadowed by the prospect of a global recession, Trend reports with reference to TASS .
Brent crude futures rose 56 cents, or 0.6%, to $92.90 a barrel
by 0415 GMT. West Texas Intermediate (WTI) crude futures climbed 62
cents, or 0.7%, to $87.15 a barrel.
The contracts slumped about 3% on Tuesday as weak U.S. housing
starts data spurred concerns about a potential global
'A drawdown of U.S. gasoline stockpiles for a second straight
week has reassured investors that demand is resilient, prompting
buys,' said Kazuhiko Saito, chief analyst at Fujitomi Securities Co
'Still, the oil market is expected to stay under pressure, with
fairly high volatility, due to worries over a potential global
recession,' he said.
U.S. crude and fuel stocks fell in the latest week, according to
market sources citing American Petroleum Institute figures on
Crude stocks fell by about 448,000 barrels for the week ended
Aug. 12. Gasoline inventories fell by about 4.5 million barrels,
while distillate stocks fell by about 759,000 barrels, according to
An extended Reuters poll showed on Tuesday that crude
inventories likely dropped by around 300,000 barrels last week and
gasoline stockpiles likely fell 1.1. million barrels, while
distillate inventories rose.
Investors also awaited clarity on talks to revive the 2015 Iran
nuclear deal. Oil supply could rise if Iran and the United States
accept a proposal from the European Union, which would remove
sanctions on Iranian oil exports, analysts said.
The EU and United States said on Tuesday they were studying
Iran's response to what the EU has called its 'final' proposal to
save the 2015 nuclear deal after Tehran called on Washington to
show flexibility. read more
'When WTI prices were well north of $100, the revival of the
Iranian nuclear agreement looked like a potentially winning
mid-term issue but it appears to be a less compelling case in the
current price and security context,' said RBC Capital analyst
Helima Croft in a note on Wednesday.
'We would note that the Europeans are likely more incentivised
to secure a deal given the looming supply shortage the continent
faces when Russian sanctions come on in December.'
Meanwhile, Barclays lowered its Brent price forecasts on Tuesday
by $8 per barrel for 2022 and 2023, as it expects a large surplus
of crude oil over the near-term due to 'resilient' Russian
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