Oil rises more than 1% after US stockpile drop; Brent nears $65

The oil market'does not know which way to trend, said one analyst

Oil prices rose on Wednesday in Asia after data showed USA crude inventories fell for a fourth straight week. U.S. West Texas Intermediate (WTI) crude futures rose 15 cents to settle at $57.66 a barrel.

Brent crude oil, against which Nigerian oil is measured, closed at $63.90 a barrel on Monday, down from $65.11.

Business and authorities knowledge for launch afterward Tuesday and on Wednesday is predicted to point out that USA crude stockpiles fell for a fourth consecutive week, dropping 3.6 million barrels, in keeping with a preliminary Reuters ballot.

Harder spoke shortly after the U.S. Energy Information Administration, a statistics-focused offshoot of the Department of Energy, released its short-term energy outlook.

"Prices are finely balanced right now as investors await fresh stimulus", said Fawad Razaqzada, technical analyst at FOREX.com.

Iran has long threatened to close the Strait of Hormuz, through which nearly a fifth of the world's oil passes, if it was unable to export its oil due to US sanctions.

Major oil firms began evacuating and halting production in the Gulf of Mexico ahead of the storm, which is forecast to become a hurricane by the weekend. Exxon Mobil Corp (XOM.N) said it was "closely monitoring" the disturbance to determine if its facilities might be affected. Even the increase in Saudi Arabia supply did not offset losses in Iran and Venezuela due to US sanctions and other outages elsewhere in the group, a Reuters survey showed.

The U.S. and global benchmarks have gained this year as the Organisation of the Petroleum Exporting Countries (OPEC) and big producers such as Russian Federation have curbed output to bolster prices.

On the other side of the world, OPEC and its allies agreed last week to extend production cuts for a further nine months to help support prices against a weakening global demand, calling for participating countries to cut output by around 1.2 million barrels per day.

Energy prices got support as traders were anxious that geopolitical tensions in the Middle East may disrupt oil flows.

"I think one of the reasons for sanctions against Iran and Venezuela is opening up the market for American oil sales", Oil Minister Bijan Namdar Zanganeh said in an interview with state TV late Sunday, a transcript of which was provided by his ministry's SHANA news agency.

Aside from that, a strong employment figure in June, which revealed USA economy added 2,24,000 new jobs in June, its best figure in five months, would likely to add a bullish breeze to crude oil future prices, meanwhile easing some concerns related to global slowdown risks.

"While we don't look for major downward demand revisions from any of the sources, we do feel that oil demand growth estimates for this year will be seeing some bearish changes as this year progresses", said analysts at Ritterbusch & Associates according to The Wall Street Journal. The nation is the world's fourth-largest user of crude. This article is strictly for informational purposes only.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc.

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