Oil prices climb as U.S. stock drawdown eases supply glut fears
Oil prices advanced on Thursday as a drawdown of U.S. crude inventories and output cuts by major producers helped ease concerns about a supply glut, though lingering fears over the global economic fallout from the COVID-19 pandemic capped gains, Reuters reported.
Brent crude futures for July delivery LCoc1 were trading up 33 cents, or 0.9%, at $36.08 per barrel at 0344 GMT, rising for a second day.
U.S. West Texas Intermediate (WTI) crude futures for July CLc1 were up 20 cents, or 0.6%, at $33.69 a barrel, extending its gains into a sixth straight session.
“While signs that WTI storage pressures are abating is positive for prices, the latest report shows that the fall in stocks owes more to supply factors than growing product demand,” Capital Economics said in a note issued on Wednesday.
Prices have been boosted lately by shipping data showing the Organization of the Petroleum Exporting Countries, Russia and other allies, a group known as OPEC+, are complying with their pledge to cut 9.7 million barrels per day (bpd).
OPEC itself is encouraged by the rally in prices and strong adherence to output cut pledges, its secretary general said, although sources say the group has not ruled out further steps to support the market.