WTI edges higher to around $62.15 in Thursday’s early Asian session, adding 0.88% on the day.
OPEC+ kept its output policy unchanged; attention will shift to the July OPEC+ output decision.
Oil inventories fell by 4.236 million barrels in the week ended May 23, according to the API.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.15 during the Asian trading hours on Thursday. The WTI price edges higher on supply concerns after OPEC+ agreed to leave their output policy unchanged.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to leave their formal output quotas unchanged. OPEC+ nations said they decided to “reaffirm the level of overall crude oil production for OPEC and non-OPEC Participating Countries” as agreed during the December meeting. The WTI price gains momentum after the meeting. A separate meeting on Saturday of OPEC+ countries is expected to decide on an increase in oil output for July.
The American Petroleum Institute (API) weekly report showed crude oil stockpiles in the US for the week ending May 23 fell by 4.236 million barrels, compared to a rise of 2.499 million barrels in the previous week. So far this year, crude oil inventories are up more than 21 million barrels, according to calculations of API data.
Optimism that trade deals will brighten the US economic outlook could boost the Greenback. This, in turn, might weigh on the USD-denominated commodity price. Oil traders will take more cues from the EIA Crude Oil Stocks weekly report due later on Thursday, along with the second estimate of the US Q1 Gross Domestic Product (GDP) Growth Rate.
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