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Crude edges higher in early Asia, API, OPEC eyed

Published 03/13/2017, 07:19 PM
Updated 03/13/2017, 07:21 PM
© Reuters. Crude up slightly in Asia
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Investing.com - Crude edged higher in early Asia with API estimates ahead with industry estimates on U.S. inventories ahead as well as figures on global supply and demand and industrial output in China.

On the New York Mercantile Exchange, West Texas Intermediate crude for April rose 0.02% to $48.41 a barrel. On the Intercontinental Exchange, global benchmark Brent for May delivery was last quoted at $51.42 a barrel.

Ahead, China reports fixed asset investment for January with an 8.2% gain expected year-on-year, industrial production seen up 6.2% and retail sales with an expected 10.5% increase.

As well, later on Tuesday, the American Petroleum Institute is slated to give its estimates of U.S. crude and refined product stockpiles. The figures are followed on Wednesday by official data from the EIA expected to show a 3.2 million barrel gain in crude stocks, while gasoline supplies fell by 1.98 million barrels and distillates declined 1.5 million barrels at the end of last week.

Overnight, U.S. shale oil output was forecast to rise by 109,000 barrels per day (bpd) in April to hit 4.96 million bpd, the U.S. Energy Information Administration's (EIA) drilling productivity report released on Monday showed.

The figures set the stage for a report by the Organization of the Petroleum Exporting Countries monthly assessment of oil markets. On Wednesday, the International Energy Agency will release its monthly report on global oil supply and demand.

Crude prices are down more than 8% since last Monday, the biggest week-on-week drop in four months, as evidence grows the supply response to coordinated oil output cuts is more robust than expected.

OPEC and non-OPEC countries made a strong start to lowering their oil output by almost 1.8 million bpd by the end of June, but so far the move has had little impact on inventory levels.

Kuwait is scheduled to host a ministerial meeting on March 26 comprising both OPEC and non-OPEC members to review compliance with the output agreement and to discuss whether cuts would be extended beyond June.

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