Wednesday, February 26, 2014
Oil prices rose
World oil prices rose on Wednesday (Thursday morning GMT ) , the U.S. contract gained impetus from the inventory report " bullish " and another blast of winter is very cold again swept the country .
The main contract , light sweet crude or West Texas Intermediate ( WTI ) for delivery in April , up 76 cents during trading sessions , to close at 102.59 dollars a barrel on the New York Mercantile Exchange , AFP reported .
Brent North Sea crude for April delivery edged up a penny to settle at 109.52 dollars in London trade .
Fuel inventory reports weekly U.S. Department of Energy ( DoE ) raised the price of crude oil on the New York morning trading , the details of which points to a potential improvement in consumer demand in the world 's biggest crude oil .
Commercial crude oil supplies rose only 100,000 barrels last week , one-eighth of analysts' estimates .
Inventories at Cushing , Oklahoma , the depot serves as a reference for WTI , fell 1.1 million barrels , supporting oil prices , said Andy Lipow of Lipow Oil Associates .
The opening of the southern part of the Keystone XL pipeline , which carries oil from Cushing to refineries on the Texas Gulf Coast , has reduced buildup in the center of WTI crude oil .
" Operates refineries higher ... keeping the U.S. inventory under control , " said Lipow .
The difference between the price of WTI and Brent has narrowed since Monday to levels not seen for months . On Wednesday Brent closing Wednesday , the price difference stood at 6.93 billion U.S. dollars, the lowest gap since October .
The DoE also reported distillate stocks , which include heating oil , slightly higher last week , with 300,000 barrels . Despite this increase snapped a six consecutive weeks , the rate remained 9.0 percent lower than a year ago because most of the country has been hit by a severe winter .
Lipow predicts the distillate market will continue to be supported by cold weather " is expected to continue for the next 10 days . "
Political unrest in oil-producing Venezuela , as well as Libya and South Sudan , still supporting the market , analysts said .
" The market is concerned about supply disruptions in Venezuela , " said Lipow .