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NYMEX-Crude rises toward $91 on U.S. oil stocks drop
October 1, 2014 / 11:59 PM / 3 years ago

NYMEX-Crude rises toward $91 on U.S. oil stocks drop

TOKYO, Oct 2 (Reuters) - U.S. crude futures edged up on Thursday towards $91 a barrel and paring losses from a day earlier due to support from a U.S. government report showing a surprise drop in U.S. crude stockpiles.

FUNDAMENTALS

* NYMEX crude for November delivery was up 18 cents at $90.91 a barrel by 2324 GMT, after settling down 43 cents at $90.73 on Wednesday.

* Despite the gains, the contract is still trading near a 16-month low of $90.43 hit on Sept. 11 because of ample supplies, a lacklustre global economy and the strengthening of the dollar.

* London Brent crude for November delivery was not traded yet, after settling down 51 cents at $94.16.

* U.S. crude inventories fell 1.4 million barrels last week, compared with an expected increase of 700,000 barrels, U.S. government data showed. A sharp reduction in refinery runs cut gasoline stocks to their lowest in nearly two years and pared distillate supplies ahead of winter.

* Analysts made the largest downward revision on their oil price forecast in almost two years, a monthly Reuters poll showed, with the marked weakness in the price of Brent seen persisting into 2015.

* The oil price drop is a concern for some OPEC members, and the group will consider cutting production at a meeting on Nov. 27 in Vienna. Some analysts believe Saudi Arabia, OPEC’s largest producer, could cut before then if prices continue to slide.

MARKETS NEWS

* U.S. stocks dropped more than 1 percent on Wednesday as the first diagnosis of Ebola in a patient in the United States spooked investors and economic data pointed to uneven growth.

* The dollar dropped from six-year highs against the yen on Wednesday, weighed down by a fall in U.S. Treasury debt yields amid weakness in global stocks.

DATA/EVENTS

* The following data is expected on Thursday: (Time in GMT)

- 0900 Euro Zone Producer Prices Aug

- 1130 U.S. Challenger Layoffs Sept

- 1145 ECB deposit rate Oct

- 1230 U.S. initial jobless claims weekly

- 1345 U.S. ISM-New York Index Sept

- 1400 U.S. Durable goods Aug

- 1400 U.S. Factory Orders Aug (Reporting by Osamu Tsukimori; Editing by Michael Perry)

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