Oil edges lower as supply disruption concerns ease

Oil pump jacks are seen on the Vaca Muerta shale oil and fuel deposit within the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian

SINGAPORE, Aug 11 (Reuters) – Oil costs drifted decrease on Thursday after gaining greater than $1 within the earlier session, as considerations over provide disruptions eased and markets seemed for proof of enhancing gas demand.

Brent crude futures dipped 7 cents, or 0.1%, to $97.33 a barrel by 0642 GMT, whereas U.S. West Texas Intermediate crude futures fell 9 cents, or 0.1%, to $91.85.

Oil is struggling to search out path, suggesting buyers haven’t reached a consensus on the outlook for provide and demand, analysts from Haitong Futures mentioned.

U.S. crude oil shares rose by 5.5 million barrels in the latest week, the U.S. Vitality Data Administration mentioned, greater than the anticipated enhance of 73,000 barrels. learn extra

Gasoline product provided rose in the latest week to 9.1 million barrels per day, although that determine nonetheless exhibits demand down 6% over the previous 4 weeks in contrast with the year-ago interval.

The premium for front-month WTI futures over barrels loading in six months’ time was pegged at $4.38 a barrel on Thursday, the bottom in 4 months, indicating easing tightness in immediate provides.

The resumption of flows on the Russia-to-Europe Druzhba pipeline additional calmed market worries over world provides.

Russian state oil pipeline monopoly Transneft (TRNF_p.MM) restarted oil flows by way of the southern leg of the Druzhba oil pipeline. Ukraine had suspended Russian oil pipeline flows to elements of central Europe since early this month as a result of Western sanctions prevented it from receiving transit charges from Moscow, Transneft mentioned on Tuesday. learn extra

In the meantime, bodily oil costs around the globe have begun to sag alongside futures, reflecting easing considerations over Russian-led provide disruptions and heightened worries a couple of attainable world financial slowdown. learn extra

Month-to-month oil studies from the Worldwide Vitality Company (IEA) and the Group of the Petroleum Exporting Nations (OPEC) are anticipated afterward Thursday.

Modifying by Michael Perry, Jacqueline Wong and Kim Coghill

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