Home Business Brent oil rises on Iraq turmoil, US inventory drop

Brent oil rises on Iraq turmoil, US inventory drop


Brent rose on Wednesday as U.S. energy stockpiles fell underscoring a healthy outlook for demand from the world’s top oil consumer amid tensions in Iraq that threaten global supplies.
The Department of Energy Information Administration (EIA) reported that crude stocks tumbled by 2.59 million barrels in the latest week, while gasoline stocks rose by 1.7 million barrels.
Those figures were opposite of data from the American Petroleum Institute which showed on Tuesday that gasoline stocks fell by 441,000 barrels, compared with expectations for a 843,000-barrels gain.
The API data reported a rise in crude stocks by 1.45 million barrels versus forecasts of a decrease of 1.9 million barrels.
Brent futures added 50 cents to trade shy of 110 dollars a barrel, after shedding 0.4 per cent in the previous session.
U.S. oil was flat above 104 dollars.
It rose to an intraday high of 105.06 dollars since the previous session, inching close to the high for the year at 105.22 dollars touched in early March.
The market is watching the unfolding crisis in Iraq where an al-Qaeda splinter group seized control of the city of Mosul.
The U.S said it would support a strong and coordinated response to the aggression.
Meanwhile, Oil Minister Abdul Kareem Luaibi aimed to assure markets that any state of emergency would not impact oil exports. (Reuter/NAN)

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