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Oil rises after API data shows supply decrease

Published 09/04/2013, 08:49 PM
Updated 09/04/2013, 08:50 PM
Investing.com - Oil futures traded higher in the early part of Thursday’s Asian session after data from the American Petroleum Institute showed U.S. oil inventories declined last week.

On the New York Mercantile Exchange, light, sweet crude futures for October delivery rose 0..18% to USD107.42 per barrel in Asian trading Thursday. The October contract settled lower by 1.21% at USD107.23 per barrel on Wednesday.

Earlier Thursday, the American Petroleum Institute said U.S. oil inventories declined fell by 4.2 million barrels for the week ended Aug. 30. Analysts expected a decline of 2.5 million barrels.

API also said gasoline stockpiles declined by 387,000 barrels while distillate supplies fell 109,000 barrels. Analysts expected a 1 million-barrel drop in gasoline inventories and an increase of 800,000 barrels for distillates.

The API data comes a day before the more widely followed Energy Information Administration report. Both reports were delayed by one day this week because U.S. markets were closed Monday in observance of the Labor Day holiday.

Oil fell Wednesday as traders seemed to believe a U.S. military strike against Syria is not as imminent as previously believed.

Meanwhile, the Federal Reserve’s Beige Book report released during Wednesday’s U.S. session showed a moderate and improving pace of economic growth across all 12 Fed regions.

In other U.S. economic news, the U.S. Commerce Department reported that the U.S. trade deficit widened more than expected in July, hitting USD39.1 billion from a downwardly revised USD34.5 billion deficit in June, mainly due to improving imports.

Elsewhere, Brent crude futures for October delivery were flat at USD115.02 per barrel on the ICE Futures Exchange.


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