17-10-2018 05:30 PM
Oil prices continued gains into a fourth session on Wednesday, sustained as industry data revealed a astonishing drop in U.S. crude inventories and as geopolitical worries over the vanishing of a well-known Saudi journalist strengthened supply tensions.
According to Mr.Ponmudi, Market analyst and Managing Director at Enrich Commodities - The market is responding to the unpredicted decline as inventories are inclined to rise at this time of year."
American Petroleum Institute data revealed after Tuesday's settlement - U.S. crude inventories dropped by 2.1 million barrels the previous week when evaluated with market analyst outlook for a build of 2.2 million barrels,
The API data revealed .U.S. gasoline stocks dropped by a larger-than-predicted 3.4 million barrels, while distillate fuel stockpiles turned down by a smaller-than-expected 246,000 barrels,
Inventory data from the U.S. Energy Department's Energy Information Administration is due at 1430 GMT later on today.
U.S. President Donald Trump gave Saudi Arabia the advantage of the uncertainty in the loss of journalist Jamal Khashoggi even as U.S. lawmakers pointed the issue towards the Saudi management and Western pressure climbed on Riyadh to offer response.
In the interim, OPEC Secretary-General Mohammad Barkindo on Tuesday advocated oil producing companies to boost competence and invest more to meet future demand as spare oil capability minimize worldwide.
The market has been supported by reports that Iranian crude Experts may be dropping faster than expected ahead of Nov. 4, the date U.s. sanctions on the commodity are due to start.