Oil prices soar on reports of fall in US inventory
Oil prices have risen to a nearly eight-week peak, driven by the reports of a fall in US stocks and a slowdown in the increase rate of shale oil production.
Brent crude futures LCOc1 increased by 41 cents to $50.61 a barrel, while US West Texas Intermediate futures CLc1 rose by 49 cents to touch $48.38, reported Reuters.
According to a report released by the American Petroleum Institute (API), US crude inventory fell as the refineries increased output.
Oil stocks fell by 10.2 million barrels in the week ending 21 July to 487 million, against expectations of a 2.6 million barrel fall.
However, gasoline inventories increased, the report stated.
Earlier, oil prices gained support following Saudi Arabia’s announcement to restrict crude exports to 6.6 million barrels per day (bpd) in August, a one million bpd decrease from the earlier year.
The announcement was made after the meeting between OPEC and non-OPEC nations.
In addition, Nigeria agreed to limit its production by curbing its output from 1.8 million bpd once it stabilises to that level.
US oil producer Anadarko Petroleum announced to reduce its capital budget for this year by $300m due to persistently low oil prices.
Since last year, oil prices witnessed sharp fall due to ongoing global glut has primarily been driven by a rise in US production.
Furthermore, Indonesia's Energy Minister has that the country will join OPEC if the oil cartel does not force it to curb its production.