Oil rises ahead of U.S. weekly inventory figures

Oil rises ahead of U.S. weekly inventory figures

On Monday, they hit their highest since December 2014 at $70.37 a barrel.

Prices have been driven up by oil production curbs in OPEC nations and Russian Federation, as well as strong demand thanks to healthy economic growth. Brent, the global benchmark, rose 23 cents, or 0.3%, to $69.38 a barrel.

Investigations also showed that US crude stocks fell by 11.2 million barrels in the week to January 5 to 416.6 million barrels, industry group, the American Petroleum Institute, said on Tuesday.

The American Petroleum Institute (API) report will be released at 4:30 p.m. ET, followed by U.S. Energy Information Administration (EIA) data on Thursday at 11 a.m. ET.

U.S. West Texas Intermediate (WTI) crude futures were at $64.25 a barrel, up 28 cents, or 0.4 percent, from their last settlement.

The API data also showed a well supplied fuel product market, which could mean lower crude demand going forward.

Oil rises ahead of U.S. weekly inventory figures
Oil rises ahead of U.S. weekly inventory figures

Oil prices were pulling back to even Wednesday after recent declines amid renewed threats for OPEC member Nigeria, but production trends are balancing the run.

"Prices ... rallied on the back of noticeable de-stocking of crude inventories, owing in part to reduced crude production from OPEC and Russian Federation", said Fawad Razaqzada, market analyst at future brokerage Forex.

"The upside is now limited for oil prices. This would put the USA on par with Saudi Arabia and Russia's output", Razaqzada said. USA will rise to about 11 million bpd by the end of next year.

Oil has been pushed higher by an effort led by the Organization of the Petroleum Exporting Countries and Russian Federation to withhold production since January a year ago. With another 8 million barrels per day expected between 2010 and 2025, the International Energy Agency said the US oil patch was expanding at a historic pace.

Despite this, Ruecker warned that "hedge fund expectations for further rising prices have reached excessive levels", especially as political risk factors that have helped boost Brent, including tensions in Qatar, Kurdish regions and in Iran have so far not caused significant supply disruptions.

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