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Oil broadly stable as inventory data counters trade deal hopes

CommoditiesJun 19, 2019 05:10AM ET
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© Reuters. Pumpjacks are seen against the setting sun at the Daqing oil field in Heilongjiang

By Shadia Nasralla

LONDON (Reuters) - Oil prices were broadly steady on Wednesday as data suggesting a smaller-than-expected fall in U.S. crude inventories countered support from hopes for a U.S.-China trade deal.

Brent crude futures were down 18 cents at $61.96 a barrel by 0839 GMT.

U.S. West Texas Intermediate crude fell 5 cents to $53.85 a barrel. On Tuesday, it had recorded its biggest daily rise since early January.

After weeks of swelling, U.S. crude stocks fell by 812,000 barrels last week to 482 million, industry group the American Petroleum Institute said on Tuesday, a smaller fall than the 1.1 million barrel drop analysts had expected.

PVM said a price rally had run out of steam "as concerns over bulging U.S. oil stockpiles return to the fore."

Estimates on U.S. crude stockpiles from the U.S. Energy Information Administration are due on Wednesday. [EIA/S]

U.S. President Donald Trump offered some support, by saying preparations were starting for him to meet Chinese President Xi Jinping next week at the G20 summit in Osaka, Japan.

Talks between the United States and China broke down last month after Washington accused the Chinese of backing away from previously agreed commitments.

Interaction between the two sides has been limited since then. Trump has repeatedly threatened to slap more tariffs on Chinese goods.

European Central Bank President Mario Draghi also offered a boost, saying on Tuesday that the central bank would ease policy again if inflation failed to accelerate.

Elsewhere, tensions in the Middle East after last week's tanker attacks remain high. Fears of a confrontation between Iran and the United States have mounted since last Thursday's attacks. Washington blamed Tehran, which has denied any role.

Trump said he was prepared to take military action to stop Iran having a nuclear bomb but left open whether he would approve the use of force to protect Gulf oil supplies.

The United States is deploying about 1,000 more troops to the Middle East, saying it was a defensive move in response to what Washington says is concerns about a threat from Iran.

Members of the Organization of the Petroleum Exporting Countries have agreed to meet on July 1, followed by a meeting with non-OPEC allies on July 2, after weeks of wrangling over dates.

OPEC and its allies will discuss whether to extend a deal on cutting 1.2 million barrels per day of production that runs out this month.

Oil broadly stable as inventory data counters trade deal hopes
 

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Hank Williams
Hank Williams Jun 19, 2019 5:52PM ET
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If OPEC doesn't want crude to go past a certain level, they can support it.
Doug Jones
Doug Jones Jun 19, 2019 12:22AM ET
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The market is giving whoever these terrorists are what they want with higher prices. Smart.
icouldnotthink67 .
icouldnotthink67 . Jun 19, 2019 12:22AM ET
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Under $50 oil starts to actually crush American jobs. $60 is a stable price everyone can live with.
Doug Jones
Doug Jones Jun 19, 2019 12:22AM ET
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icouldnotthink67 .I don't have a problem with $60 based on fundamentals and supply but this is not the case.
Hank Williams
Hank Williams Jun 18, 2019 9:02PM ET
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Tension and hopes, tension and hopes........
 
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