Investing.com - Crude oil prices gained in Asia on Wednesday as U.S. industry data showed a sharp stocks draw last week and the market looks ahead to GDP data from China.
The American Petroleum Institute said crude oil stocks fell 7.3 million barrels last week, but data on distillate and gasoline stocks was not immediately available.
Later Wednesday the U.S. Department of Energy will release more closely-watched figures on U.S. stocks. The U.S. Energy Information Administration (EIA) could show that crude stockpiles fell by 2.1 million barrels for the week ending on July 10.
On the New York Mercantile Exchange, WTI crude for August delivery rose 0.48% to $53.30 a barrel.
China is expected to report GDP gained at a 6.9% pace in the second quarter year-on-year, or a 1.7% quarterly clip. As well, industrial out likely rose 6.0% in June year-on-year, while retail sales jumped 10.2% in the same month.
Overnight, WTI crude futures rose sharply on Tuesday afternoon, rallying from significant losses in the morning session after Iran and a group of western powers finally agreed to terms on a comprehensive nuclear deal, following months of wrangling and delayed negotiations.
In many ways, the rally in WTI crude on Tuesday afternoon was largely unexpected. A nuclear deal has been viewed by many industry experts as bearish for crude, as Iran reportedly hoards 30 million barrels of crude in its reserves ready for export. In April, for instance, crude futures plunged more than 4%, hours after the two sides agreed on a framework for a more extensive deal.
Over the last several years, crippling economic sanctions have limited Iranian exports to approximately a million barrels of crude per day. Last month, however, Mehdi Asali, the Iranian representative to Opec, told the Iranian News Agency that the nation's crude exports could double within six months of the lifting of sanctions. An outflow of Iranian oil could depress crude prices in a market already saturated by a glut of oversupply.
When Opec decided to keep its production ceiling above its current level of 30 million barrels per day at its June meeting, Iran oil minister Bijan Namdar Zanganeh expressed dissatisfaction with the price of crude at a level near $60 a barrel. At the same time, Zanganeh said a majority of Opec members were happy with crude at a level closer to $75. In May, Iran produced 2.8 million barrels of crude per day, a level higher than that of Venezuela or Nigeria, Bloomberg reported.
It could still be awhile before a surge of Iranian exports flow into the global markets. As soon as the U.S. Congress receives a submission of the accord, it will begin an intensive 60-day review period, Sen. Bob Corker (R, Tennessee) said in a statement. The period could be extended by an additional 12 days if the Senate and House of Representatives decide to submit a joint resolution to the White House. Additionally, Congress could be given 10 further days to override a potential veto.
On the Intercontinental Exchange (ICE), Brent crude for September delivery reached a session-high of $58.95 a barrel, before settling at 58.63, up 0.84% on the session Tuesday.