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Oil rises on US crude inventory draw, falling Chinese output

International Brent crude futures were at $52.14 a barrel, up 46 cents, or 0.89 per cent

Reuters  |  Singapore 

Image via Shutterstock
Image via Shutterstock

prices rose on Wednesday, lifted by a report of a drop in crude inventories and declining production in China, while an upbeat statement on its planned output cut also supported the market.

A slightly weaker dollar boosted as well, traders said, as it makes fuel purchases cheaper for countries using other currencies, potentially spurring demand.

West Texas Intermediate (WTI) crude futures were trading at $50.73 per barrel at 0326 GMT, up 44 cents, or 0.87 per cent, from their last settlement.

International Brent crude futures were at $52.14 a barrel, up 46 cents, or 0.89 per cent.

"The American Petroleum Institute crude inventory numbers were released ... this has given early Asian trading a bullish start," said Jeffrey Halley, senior market analyst at in Singapore.

crude stockpiles fell 3.8 million barrels in the week to October 14, to 467.1 million barrels, the API reported late on Tuesday.

The (EIA) is due to release official crude and fuel storage data later on Wednesday.

Traders said was supported by Mohammed Barkindo, secretary general of the Organization of the Petroleum Exporting Countries (OPEC), saying he is confident about the prospects of a planned production cut following an meeting on November 30.

"I am optimistic we will have a decision," he said.

In its first output cut agreement since 2008, said it plans to reduce production to 32.50 million to 33.0 million barrels per day (bpd), compared with record output of 33.6 million bpd in September.

The group also hopes non-producers, especially Russia, will cooperate in a cut.

In China, a raft of economic and trade data was released on Wednesday.

While economic growth was in line with expectations, at an annual growth rate of 6.7 per cent in the third quarter, its figures were supportive of higher prices, traders said.

China processed 43.8 million tonnes (10.7 million bpd) of crude in September, up 2.4 per cent from a year ago, government data showed on Wednesday.

Over the same month, China's production fell 9.8 per cent to 15.98 million tonnes (3.89 million bpd), in its steepest decline in 19 months.


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Oil rises on US crude inventory draw, falling Chinese output

International Brent crude futures were at $52.14 a barrel, up 46 cents, or 0.89 per cent

International Brent crude futures were at $52.14 a barrel, up 46 cents, or 0.89 per cent
prices rose on Wednesday, lifted by a report of a drop in crude inventories and declining production in China, while an upbeat statement on its planned output cut also supported the market.

A slightly weaker dollar boosted as well, traders said, as it makes fuel purchases cheaper for countries using other currencies, potentially spurring demand.

West Texas Intermediate (WTI) crude futures were trading at $50.73 per barrel at 0326 GMT, up 44 cents, or 0.87 per cent, from their last settlement.

International Brent crude futures were at $52.14 a barrel, up 46 cents, or 0.89 per cent.

"The American Petroleum Institute crude inventory numbers were released ... this has given early Asian trading a bullish start," said Jeffrey Halley, senior market analyst at in Singapore.

crude stockpiles fell 3.8 million barrels in the week to October 14, to 467.1 million barrels, the API reported late on Tuesday.

The (EIA) is due to release official crude and fuel storage data later on Wednesday.

Traders said was supported by Mohammed Barkindo, secretary general of the Organization of the Petroleum Exporting Countries (OPEC), saying he is confident about the prospects of a planned production cut following an meeting on November 30.

"I am optimistic we will have a decision," he said.

In its first output cut agreement since 2008, said it plans to reduce production to 32.50 million to 33.0 million barrels per day (bpd), compared with record output of 33.6 million bpd in September.

The group also hopes non-producers, especially Russia, will cooperate in a cut.

In China, a raft of economic and trade data was released on Wednesday.

While economic growth was in line with expectations, at an annual growth rate of 6.7 per cent in the third quarter, its figures were supportive of higher prices, traders said.

China processed 43.8 million tonnes (10.7 million bpd) of crude in September, up 2.4 per cent from a year ago, government data showed on Wednesday.

Over the same month, China's production fell 9.8 per cent to 15.98 million tonnes (3.89 million bpd), in its steepest decline in 19 months.


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Business Standard
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Oil rises on US crude inventory draw, falling Chinese output

International Brent crude futures were at $52.14 a barrel, up 46 cents, or 0.89 per cent

prices rose on Wednesday, lifted by a report of a drop in crude inventories and declining production in China, while an upbeat statement on its planned output cut also supported the market.

A slightly weaker dollar boosted as well, traders said, as it makes fuel purchases cheaper for countries using other currencies, potentially spurring demand.

West Texas Intermediate (WTI) crude futures were trading at $50.73 per barrel at 0326 GMT, up 44 cents, or 0.87 per cent, from their last settlement.

International Brent crude futures were at $52.14 a barrel, up 46 cents, or 0.89 per cent.

"The American Petroleum Institute crude inventory numbers were released ... this has given early Asian trading a bullish start," said Jeffrey Halley, senior market analyst at in Singapore.

crude stockpiles fell 3.8 million barrels in the week to October 14, to 467.1 million barrels, the API reported late on Tuesday.

The (EIA) is due to release official crude and fuel storage data later on Wednesday.

Traders said was supported by Mohammed Barkindo, secretary general of the Organization of the Petroleum Exporting Countries (OPEC), saying he is confident about the prospects of a planned production cut following an meeting on November 30.

"I am optimistic we will have a decision," he said.

In its first output cut agreement since 2008, said it plans to reduce production to 32.50 million to 33.0 million barrels per day (bpd), compared with record output of 33.6 million bpd in September.

The group also hopes non-producers, especially Russia, will cooperate in a cut.

In China, a raft of economic and trade data was released on Wednesday.

While economic growth was in line with expectations, at an annual growth rate of 6.7 per cent in the third quarter, its figures were supportive of higher prices, traders said.

China processed 43.8 million tonnes (10.7 million bpd) of crude in September, up 2.4 per cent from a year ago, government data showed on Wednesday.

Over the same month, China's production fell 9.8 per cent to 15.98 million tonnes (3.89 million bpd), in its steepest decline in 19 months.


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Business Standard
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