A energize jack operates at a well site leased by Devon Energy Production Co. near Guthrie, Oklahoma.
Nick Oxford | Reuters
Oil evaluates rose over 1 percent on Thursday as official data showed U.S. crude stocks fell more than envisaged and as OPEC and other producers finally agreed a date for a meeting to discuss output cuts.
Brent crude futures had risen 82 cents, or 1.3%, to $62.64 by 0026 GMT. They dropped 0.5% on Wednesday.
U.S. West Texas Intermediary (WTI) crude futures were up 79 cents, or 1.5%, at $54.55 a barrel. WTI fell 0.26% in the previous session.
After protrusion to near two-year highs, U.S. crude stocks fell by 3.1 million barrels last week, compared with analyst desires for a draw of 1.1 million barrels, the Energy Information Administration (EIA) said.
Refined products also posted shocker drawdowns due to a rise in refining and crude exports, as well as a drop in crude production.
Members of the Organization of the Petroleum Exporting Countries allowed to meet on July 1, followed by a meeting with non-OPEC allies on July 2, after weeks of wrangling all through dates.
OPEC and its allies will discuss whether to extend a deal on cutting 1.2 million barrels per day of manufacture that runs out this month.
Momentum for an agreement appeared to be building as the United Arab Emirates’ energy vicar told Al-Bayan newspaper that an extension is “logical and reasonable”.
“Oil price volatility is likely to persist, but the upcoming OPEC assignation should serve to provide the markets with a reasonable backstop and will offer some much-needed respite for rates,” said Stephen Innes, managing partner at Vanguard Markets in Bangkok.
Expectations the U.S. Federal Reserve could cut concern engaged rates at its next meeting and confirmation that the chief U.S. trade negotiator will meet his Chinese counterpart beforehand a meeting between President Donald Trump and Chinese President Xi Jinping next week are also supporting demands.
Tensions remain high in the Middle East after last week’s tanker attacks, which boosted oil cost outs. Fears of a confrontation between Iran and the United States have mounted, with Washington blaming Tehran, which has denied any situation.
A rocket attack on a site in southern Iraq used by foreign oil companies, including U.S. energy giant ExxonMobil, socialistic three people wounded and threatened to further escalate U.S.-Iran tensions in the region.