Oil extended gains above $62 a barrel before U.S. government data forecast to show crude stockpiles declined for an eighth week and as political tensions simmer in Iran, OPEC’s third-biggest producer.
Futures added as much as 1.3 percent in New York after rising 0.5 percent on Monday. U.S. inventories probably dropped by 3.75 million barrels last week, a Bloomberg survey shows before an Energy Information Administration report Wednesday. Iran’s President Hassan Rouhani said Monday the anger that led to a week of anti-government protests exposed the need for the freedoms he has championed, as well as a stronger economy.
Oil had its best start to a year in five years as the Organization of Petroleum Exporting Countries and its allies continue supply cuts to drain a global glut. U.S. drilling has continued to slow, with explorers trimming the number of rigs targeting crude last week by the most since November.
West Texas Intermediate for February delivery gained as much as 83 cents to $62.56 a barrel on the New York Mercantile Exchange, and traded at $62.19 at 1:22 p.m. in Hong Kong. Total volume traded was about 70 percent above the100-day average. Prices climbed 29 cents to $61.73 on Monday after rising 1.7 percent last week, the best start to a year since 2013.
Brent for March settlement gained as much as 51 cents, or 0.8 percent, to $68.29 a barrel on the London-based ICE Futures Europe exchange after adding 0.2 percent on Monday. The global benchmark crude traded at a premium of $6.02 to March WTI.
Source : Bloomberg