Brent oil rises above $60, buoyed by U.S. inventory drawdown

Published 21/08/2019, 02:40
© Reuters.  Brent oil rises above $60, buoyed by U.S. inventory drawdown
LCO
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CL
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* API data shows bigger-than-expected drop in U.S. crude

inventory

* U.S. warns Iran tanker not to deliver oil to Syria

* Coming up: Weekly EIA inventory at 1430 GMT

By Jessica Jaganathan

SINGAPORE, Aug 21 (Reuters) - Prices for Brent oil rose

above $60 a barrel for the first time in over a week on

Wednesday amid data that showed a larger-than-expected drawdown

in U.S. crude inventories, but ongoing worries about a global

economic recession capped gains.

Brent crude LCOc1 had risen 13 cents, or 0.2%, to $60.16 a

barrel by 0136 GMT, after settling 0.5% higher on Tuesday.

U.S. crude CLc1 was up 12 cents, or 0.2%, at $56.25 a

barrel.

U.S. crude oil stocks fell by 3.5 million barrels to 439.8

million in the week to Aug. 16, data from industry group the

American Petroleum Institute (API) showed on Tuesday. Analysts

polled by Reuters had expected a decrease of 1.9 million

barrels.

Inventory numbers from the government's Energy Information

Administration (EIA) are due at 10:30 a.m. EDT (1430 GMT) on

Wednesday.

"U.S. inventory data this week will again be a more critical

catalyst than usual given that we are nearing the end of peak

U.S. driving season," Stephen Innes, managing partner, VM

Markets, said in a note.

Tensions in the Middle East remained in focus as U.S.

Secretary of State Mike Pompeo said on Tuesday that the country

would take every action it can to prevent an Iranian tanker

sailing in the Mediterranean from delivering oil to Syria in

contravention of U.S. sanctions. Crude prices were also buoyed by official data showing lower

exports in June from Saudi Arabia, the world's top oil exporter.

Saudi Arabia plans to keep its crude oil exports below 7

million bpd in August and September despite strong demand from

customers, to bring the market back to balance, a Saudi oil

official told Reuters earlier this month. But uncertainty over the global economic outlook amid the

Sino-U.S. trade war capped gains in oil prices.

"The trade-related tug of war in the oil market will

probably extend until we get some semblance of clarity from the

next round of U.S.-China trade discussion," Innes said.

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