Oil futures gained ground Wednesday, boosted after an industry trade group signaled a fall in U.S. crude inventories as traders await official data. West Texas Intermediate crude for October delivery
rose 69 cents, or 1.2%, to $58.09 a barrel, while November Brent crude
gained 56 cents, or 0.9%, to $62.94 a barrel. The American Petroleum Institute late Tuesday reported that U.S. crude supplies in the week ended Sept. 6, according to sources. API was also said to show a 4.5 million barrel fall in gasoline stockpiles, while distillate inventories rose 618,000 barrel. “The API report is quite constructive for the oil market as it points to a tightening domestic oil market in the face of flat production and stronger demand,” wrote analysts at ING, in a note. More closely watched data from the Energy Information Administration is due later Wednesday morning. A survey of analysts by S&P Global Platts produced an average estimate for a 3.6 million barrel fall in crude inventories, while gasoline stocks are forecast to decline 1.4 million barrels and distillate stocks are expected to rise 220,000 barrels. However, the Organization of the Petroleum Exporting Countries on Wednesday in 2019 and 2020, citing weaker-than-expected data in the first half of this year from various global demand centers and slower economic growth projections. Crude oil prices lost ground Tuesday, giving up earlier gains after President Donald Trump announced on Twitter that his national security adviser, John Bolton, had left. Bolton was a hawk on Iran and Venezuela and “the chance of a deal with either of those countries and the chance of their 3 million-4 million barrels of crude oil returning to market are greater without Bolton around,” said Robert Yawger, director of energy at Mizuho, in a note. Oil traders on Tuesday also digested the EIA’s decision to for this year and next. In other energy trade, October gasoline
rose 1.5%, to $1.615 a gallon, while October heating oil
was up 0.8% to $1.947 a gallon. October natural-gas futures
fell 1.6% to $2.539 per million British thermal units.