“Everything seems to be pointing to a tightening in the U.S. market, which is a positive, but it’s obviously moving at a relatively slow pace,” said Daniel Hynes, an analyst at Australia & New Zealand Banking Group Ltd. in Sydney. “Oil is heading in the right direction for slightly higher prices, but it’s moving at glacial speeds.”
Oil is trading above the $49 as US production cooled down and crude inventories decreased, reducing an overbearing glut.
Oil futures increased by 0.4% in New York after an earlier climb of 0.8% on Wednesday, according to the Energy Information Administration. Stockpiles witnessed a decrease of 6.45 M barrels. In addition, gasoline inventories unpext3dly rose for the first time since early June.
Oil prices continue to gain ground on Thursday, following the data showing a sixth consecutive week of declines in U.S. crude inventories added to optimism that the market was rebalancing.
However, the report also showed that gasoline inventories rose by 3.4 million barrels, disappointing expectations for a decline of 1.4 million barrels. For distillate inventories including diesel, the EIA reported a fall of 1.7 million barrels.
OPEC will publish its monthly assessment of oil markets at around 14:00 on Thursday. It includes figures on the state of global crude stockpiles for July.