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Crude prices move higher but hover near 5-week trough

Published 09/06/2017, 11:40
Updated 09/06/2017, 11:43
© Reuters.  Crude oil rises but upside seen limited
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Investing.com - U.S. oil moved higher on Friday, but prices were still close to a five-week trough amid ongoing concerns over a global supply glut.

U.S. crude futures for July delivery were up 0.44% at $45.84 a barrel, not far from Thursday’s five-week low of $45.20.

On the ICE Futures Exchange in London, the August Brent gained 0.48% to $48.09 a barrel, just off the five-week trough of $47.44 hit overnight.

Crude prices remained under pressure after data on Wednesday showed that U.S. crude stockpiles unexpectedly climbed last week for the first time in nine weeks.

The U.S. Energy Information Administration said crude oil inventories rose by 3.3 million barrels in the week ended June 2, disappointing expectations for a crude-stock decline of 3.4 million barrels.

Meanwhile, investors continued to weigh the impact of diplomatic tensions between Qatar and other Middle Eastern nations, including Saudi Arabia, on an OPEC-led push to tighten the market.

With oil production of about 620,000 barrels per day, Qatar's crude output ranks as one of the smallest among OPEC producers, but tension within the cartel could weaken an agreement to hold back production in order to prop up prices.

Last month, OPEC and some non-OPEC producers extended a deal to cut 1.8 million barrels per day in supply until March 2018.

Concerns that the ongoing rebound in U.S. shale production could derail efforts by other major producers to rebalance global oil supply and demand remained in focus.

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