Oil rises on signs of U.S. inventory declines, lower Saudi exports
By Devika Krishna Kumar | NEW YORK
Oil edged up on Monday on signs of inventory declines in the United States and news that Saudi Arabia will limit volumes of crude to some Asian buyers in July and deepen cuts to the United States.
Saudi Arabia, the world’s top oil exporter, will cut crude allocations to Asia in July to a total of about 300,000 barrels per day (bpd), deeper than in June, sources told Reuters. One source said volumes to the United States would be cut by about 35 percent in July.
Data from market intelligence firm Genscape estimating a draw of more than 1.8 million barrels at the Cushing, Oklahoma delivery point for U.S. crude futures last week added to the bullish sentiment, said traders who saw the data.
Brent crude futures LCOc1 ended the session up 14 cents, or 0.3 percent at $48.29 a barrel, having risen as much as 2 percent to a session high of $49.15. U.S. West Texas Intermediate (WTI) crude futures CLc1 gained 25 cents, or 0.6 percent, to settle at $46.08, having peaked at $46.71.
Prices plunged about 5 percent last week after data from the U.S. Department of Energy showed a surprise increase in stockpiles.