SINGAPORE (Reuters) – Oil prices in Asia rose on Wednesday after hitting a record high in about a year in the previous session, backed by an unexpected pull in records U.S. crude stock and OPEC + estimate of global oil market deficit this year.
Market news was bolstered by news that the Democrats in the U.S. Congress had taken the first steps toward advancing the $ 1.9 trillion coronavirus aid plan proposed by the U.S. Prime Minister. Joe Biden sits without Republican support.
U.S. West Texas Intermediate (WTI) crude futures climbed 24 cents, or 0.4%, to $ 55.00 a barrel at 0447 GMT, for the third day of profit. The benchmark hit a year-high high of $ 55.26 on Tuesday.
Brent crude futures rose 26 cents, or 0.5%, to $ 57.72 a barrel, for a fourth day of gain after hitting $ 58.05 on Tuesday, the highest level since January last year.
Analysts said the market was stimulated by the latest assessment by the Organization of Petroleum Exporting Countries, also known as OPEC +, that oil stocks will decline to below the five-year average by June .
That showed that the producers ’output cuts were succeeding in bringing the market back into equilibrium.
“The strategy was very clear. OPEC and its allies were aiming to cut a contract that would normalize global overcapacity by 2021 – well, they’re on track, “said Lachlan Shaw, head of product research at the National Bank of Australia.
OPEC + expects product cuts to keep the market in deficit this year, peaking at 2 million barrels per day in May, even as it revised the forecast for demand growth, a document seen by Reuters on Tuesday showed.
A ministerial meeting will take place on Wednesday, although no changes to oil production policy are expected to be proposed.
Supporting the market, industry data after the market closed Tuesday showed that U.S. crude and gasoline investments fell unexpectedly.
The American Petroleum Institute said U.S. crude oil deposits fell 4.3 million barrels a week to Jan. 29, compared to analysts ’expectations in a Reuters poll for a construction of 446,000 barrels.[API/S]
Gasoline stock fell 240,000 barrels, contrary to analysts’ expectations for a construction of 1.1 million barrels, while distillate deposits, which include heating oil and jet fuel, fell 1.6 million barrels, drawing more than expectation.
U.S. government data is payable at 1530 GMT from the Energy Information Administration.
Reciting with Shu Zhang; additional statement by Sonali Paul in Melbourne; edited by Richard Pullin