Daito Nippon Brokerage have recently reported on Crude prices as they rose for the second consecutive day on Wednesday, supported by muted moves in commodity markets. It also found support from speculations that weekly supply data due later in the session will show U.S. crude inventories fell last week at a faster pace than expected.
There was no major economic data on the calendar today, but the highlight of the session will be the weekly report of the American Petroleum Institute, an industry group. Even if it showed a slight rise in inventories ahead of expectations, it could spook investors and trigger yet another selloff, analysts warn.
“A survey of economists polled by Reuters are forecasting crude stockpiles to fall by 1.1 million barrels in the week ended November 20, compared to a decline of 1.6 million last week.” commented Richard Taisho, Research Director at Daito Nippon Brokerage.
In the New York Mercantile Exchange, West Texas Intermediate crude oil futures for delivery in December rose 1.4 percent at $47.22 a barrel during US late hours, up from a session low of 46.13 a barrel and off a peak of $48.06 a barrel.
The front month contract settled higher 0.98 percent at $47.94 a barrel on Monday.
“Despite the slow rise in global output and decision by the Organization of Petroleum Exporting Countries last year to cut production, market participants remained cautious over a global supply glut.” said Mr. Max Harrington, Head of Corporate Trading at Daito Nippon Brokerage.
“Investors expect that a boom in U.S. shale oil production and non-compliance by some Opec members may not allow global oil production to outpace demand any time soon.” added Senior Vice President Connor Murphy at Daito Nippon Brokerage.
Industry research group Baker Hughes (NYSE:BHI) said Friday that the number of rigs drilling for oil in the U.S. increased by six last week to 894, the second straight weekly gain.
Saudi Arabia hinted last week that it will not let prices slide again on the presumed forecasts that U.S. shale producers will stop operations.