Oil prices dip, but US crude remains above $70 on falling inventories
Oil prices slipped on Thursday, although U.S. crude remained above $70 a barrel on the back of falling crude inventories and Brent was still close to $80 because of looming sanctions against Iran.
U.S. West Texas Intermediate (WTI) crude futures
Brent crude futures
Brent rose above $80 per barrel the previous session for the first time since May, spurred by expectations that U.S. sanctions against Iran`s oil exports, which will start in November, will tighten global markets.
U.S. crude inventories
Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore, said crude inventory data for last week showed "a much deeper drop than analyst`s expectations ... propelling Brent briefly above the fundamental and psychological $80 a barrel for the first time since May, and was equally as supportive for the WTI contract."
U.S. crude oil production
Innes said the slight dips on Thursday came as rising refined product inventories, which the EIA also reported, "slightly dampened market overexuberance" as it indicated that U.S. fuel demand may be weakening.
Overall, however, Innes said "the confluence of bullish near-term signals (of) Iran sanctions and sinking U.S. crude inventories should keep oil prices supported for the remainder of the week."
(GRAPHIC: Iran oil exports to Asia - https://tmsnrt.rs/2CEzade)
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.