Oil buoyant on draws in Crude Inventories in US

Energy Information Agency reported a 2.8 million barrel decline in the US Crude Oil inventories for the week ending October, 6th lifting the bullish trend on oil prices amid the higher oil demand projections. The new report could enhance support for oil, as the glut has taken its toll on the oil market in the international markets.

On the other hand, OPEC said in its latest Monthly Oil Report said it has revised projection upwards from 30,000 bpd to 1.5 million bpd.

U.S. West Texas Intermediate (WTI) crude was at $50.94 per barrel at 0500 GMT, up 34 cents, or 0.7 percent, from their last settlement. 

Brent was at $56.59, up 34 cents, or 0.6 percent.

Oil trades continue to rise on the support of strong oil imports from the world’s largest oil importer “China” averaging 8.5 million bpd between Januarys to September. The imports for September reached 9 million. Oil imports have been higher during the current fiscal year, with a year to date increase of 12.2 percent, slashing any fears against reports of declining demand from China.

Despite the ending glut and a tightening supply market, analysts say the OPEC needs to extend the cuts onward from the March next year.