Markets > Commodities

Oil prices rise on possible global crude deficit

Xinhua Financein NEW YORK
2017-03-16 03:56

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Oil prices rose on Wednesday after data showed a possible crude deficit in the first half of 2017 and a surprise drop in U.S. crude inventories.

The International Energy Agency said on Wednesday that global inventories rose in January for the first time in six months despite output cuts by the Organization of the Petroleum Exporting Countries.

But the agency estimated that the market would see a deficit of 500,000 barrels per day in the first half of this year if current production levels were maintained to June.

Meanwhile, the drop in the U.S. crude stockpile also contributed to price rise.

The U.S. crude oil inventories posted the first weekly decline in 10 weeks, falling by 0.2 million barrels in the March 10 week to 528.2 million, up 7.3 percent from last year at this time, according to the weekly petroleum status report released by the U.S. Energy Information Administration on Wednesday.

The West Texas Intermediate for April Delivery added 1.14 U.S. dollars to settle at 48.86 dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery increased 0.89 dollars to close at 51.81 dollars a barrel on the London ICE Futures Exchange.

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