23 Aug 2017 - 0:00
Oil prices rise as supply tightens
London: Oil prices rose yesterday, lifted by indications that supply is gradually tightening, especially in the United States.
Benchmark Brent crude was up 30 cents at $51.96 a barrel by 1345 GMT. US light, sweet crude was also 30 cents higher at $47.67. US commercial crude inventories have fallen by almost 13 percent from their March peaks, to 466.5 million barrels.
The Organization of the Petroleum Exporting Countries and non-Opec producers including Russia have pledged to hold back about 1.8 million barrels per day (bpd) of output to tighten supplies and prop up prices. Oil prices found extra support from news that Libya’s Sharara oilfield, the country’s largest, shut on Tuesday. But oil production elsewhere has been rising.
The weekly rollout of data on US inventories will start soon. Industry group the American Petroleum Institute will publish statistics on crude inventories and refinery operations for last week. Today, it will be the turn of the US government’s Energy Information Administration.