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Crude Oil Prices Hover at Multi-Week Highs

Published 21/03/2018, 08:37
© Reuters.  Crude oil prices remain supported after U.S. stockpiles data
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Investing.com - Crude oil prices were hovering at multi-week highs on Wednesday, as potential supply disruptions due to tensions in the Middle-East continued to support, as well as upbeat U.S. stockpile data.

The U.S. West Texas Intermediate crude May contract was up 12 cents or about 0.19% at $63.66 a barrel by 04:35 a.m. ET (08:35 GMT), just off Tuesday's three-week highs of $63.98.

Elsewhere, Brent oil for May delivery on the ICE Futures Exchange in London added 11 cents or about 0.18% to $67.55 a barrel, after hitting a two-week peak of $67.88 in the previous session.

Oil prices were supported after the American Petroleum Institute reported on Tuesday that U.S. crude stocks fell by 2.7 million barrels in the week ended March 16, compared to expectations for an increase of 3.2 million.

The commodity was also boosted by speculation the U.S. could reimpose sanctions on Iran, as Saudi Arabia's Crown Prince Mohammed bin Salman arrived in to Washington for a state visit.

But market participants were still awaiting official data on oil and gasoline stockpiles due later Wednesday by the U.S. Energy Information Agency.

High drilling activity has pushed U.S. crude oil production to rise to 10.38 million barrels per day (bpd), past top exporter Saudi Arabia.

Analysts and traders have warned that booming U.S. shale oil production could potentially derail the Organization of the Petroleum Exporting Countries' efforts to rein in a global supply glut and support prices.

OPEC agreed in December to cut oil output by 1.8 million bpd until the end of 2018. The agreement was due to end in March 2018, having already been extended once.

Elsewhere, gasoline futures fell 0.20% to $1.967 a gallon, while natural gas futures were little changed at $2.678 per million British thermal units.

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