Fall in US crude stocks pushes oil prices higher
Oil prices continue steady climb - with prices increases boosted by a fall in US oil reserves, writes Reuters.
A barrel of European benchmark crude Brent costs USD 91.21 Wednesday morning against USD 90.27 Tuesday afternoon while a barrel of WTI trades at USD 89.92 against USD 88.81 Tuesday afternoon.
Tuesday's figures from the American Petroleum Institute showed that US crude stocks have gone down by 2 million barrels, counter to analysts' projections of an increase of 400,000 barrels. This development could contribute to additional price increases.
On Tuesday, the US also resumed indirect communication with Iran with the aim of negotiating a new nuclear deal, which could ease US sanctions on Iranian oil and thereby add more supplies to the market.
"With the negotiations ongoing, the oil price is likely to lose steam in the next week, despite the bump higher we've seen today," says analyst at CMC Markets Tina Teng.
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