October 20, 2016Print : Business
Oil prices rose over 1 percent on Wednesday, lifted by a report of falling U.S. crude inventories and an OPEC statement saying a planned production cut was achievable, but analysts warned that Chinese economic data could erode bullish momentum.
A slightly weaker dollar also supported oil, traders said, as it makes fuel purchases cheaper for countries using other currencies at home, potentially spurring demand.
U.S. West Texas Intermediate (WTI) crude oil futures were trading at $50.89 per barrel at 0118 GMT, up 60 cents, or 1.19 percent, from their last settlement. International Brent crude futures were at $52.27 a barrel, up 59 cents, or 1.14 percent. "The American Petroleum Institute crude inventory numbers were released. This has given early Asian trading a bullish start," said Jeffrey Halley, senior market analyst at OANDA in Singapore.
Crude stockpiles fell 3.8 million barrels in the week to Oct. 14, to 467.1 million barrels, the API reported late on Tuesday.