Oil was steady in Asian trading after a private-sector report indicated that U.S. crude supplies had tightened in the past week.
Futures in New York rose 3 cents, after clawing back losses in a volatile session on Tuesday. The market had stumbled after U.S. Secretary of State Mike Pompeo told CNBC that Huawei Technologies Co. and other Chinese companies pose national security threats to the U.S. A recovery came as focus switched to analyst forecasts that U.S. crude stockpiles last week fell for the first time in three weeks. The American Petroleum Institute was said to reporta 3.45 million-barrel drawdown of crude supplies.
The rivalry between U.S. and Middle Eastern oil producers has jumped up a notch as American crude makes its way right to the heart of Asia, the world’s most-prized energy market.
Canada’s oil-rich province of Alberta is extending its crude-oil output cuts by a year after delays to key pipelines dashed producers’ hopes of alleviating a shortage of shipping options.
West Texas Intermediate crude for October delivery was up 0.1% at $56.16 a barrel on the New York Mercantile Exchange as at 8:16 a.m. Sydney time.
October WTI settled 1 cent lower at $56.13 a barrel at Tuesday’s close. The September contract, which expired Tuesday, ended 13 cents higher at $56.34.
Brent for October settlement erased its earlier losses and settled up 29 cents to $60.03 on the ICE Futures Europe Exchange.
Source : Bloomberg