U.S. crude rebounds on less than expected build in stocks
By Keith Wallis
SINGAPORE (Reuters) – U.S. crude futures rebounded in early Asian trade on Wednesday, buoyed by a forecast of a less than expected build in crude oil stockpiles last week, although concern over an oversupplied market and a stronger dollar put a ceiling on gains.
Oil prices fell about 3 percent in the previous session after Kuwait and Saudi Arabia said they would resume production at the jointly operated 300,000-barrel-per-day Khafji field even as oil output is supposed to be capped.
U.S. crude rose 37 cents to $38.65 a barrel as of 2339 GMT after settling down $1.11 in the previous session.
Brent futures had yet to start trading.
U.S. crude stocks rose last week by 2.6 million barrels to 534.4 million barrels data from industry group, the American Petroleum Institute, showed on Tuesday.
That was less than analysts’ expectations of a 3.3 million barrel build, but still a record high for a seventh straight week.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 319,000 barrels, API said.
Official inventory data from the U.S. Department of Energy’s Energy Information Administration is due for release later on Wednesday.
The dollar index <.DXY> rose slightly on Wednesday after slipping to an eight-day low in the previous session. A stronger dollar makes greenback-denominated commodities more expensive for holders of other currencies.
Rosneft, Russia’s top oil producer, is set to lower oil output, Russian Natural Resources Minister Sergei Donskoi said on Tuesday, although he gave no time frame.
OPEC member Iran is expected to attend an oil producers meeting in Doha on April 17 to discuss a cap on global oil production, although it may not take part in the discussions, a source familiar with Iranian thinking said on Tuesday.
(Reporting by Keith Wallis; Editing by Ed Davies)