Brent and NYMEX surge in Asia notwithstanding API build
On Wednesday, crude prices drifted higher during Asia trade, shrugging off an industry-reported build in American inventories ahead of official figures later from the US Department of Energy.
Late on Tuesday, the American Petroleum Institute reported that crude stocks inched up 1.5 million barrels the previous week, above a prediction of a 900,000 barrels build.
In New York, February delivery American crude futures inched up 0.28%, trading at $50.96 a barrel. In London, Brent futures rallied 0.22%, hitting $53.76 a barrel.
Overnight, oversupply concerns held sway, thus taking crude steeply lower.
Currently, worries are focused on whether the OPEC as well as non-OPEC producers keep to their promised output cut pact, made in 2016 just to trim almost 1.8 million barrels per day from global energy markets.
Meanwhile, Iraq’s still producing and also selling full allocations of its crude to refiners in Asia as well as Europe.