SMM News: according to Dow Jones news, oil prices rose on Wednesday, due to geopolitical tensions and the U. S. stock market rose, offset the impact of U. S. crude oil stocks hit a 20-month high.
), NYMEX June crude oil futures rose 24 cents, or 0.4 percent, to settle at $62.02 a barrel at 14:30 New York time.
ICE July Brent crude rose 53 cents, or 0.7 percent, to settle at $71. 77 a barrel.
Oil prices have been falling over the past three weeks and have risen some this week as rising tensions between Iran and the US and its allies could disrupt global oil supplies and investors inject risk premiums into crude oil prices.
Rising tensions in the Middle East have overshadowed the unexpected increase in US crude stocks.
Us crude stocks unexpectedly rose last week to their highest level since September 2017 as strategic oil reserves were released and gasoline stocks fell more than expected, according to data released by the US Energy Information Administration on Wednesday.
Us crude stocks rose by 5.4 million barrels in the week to May 10, surprising analysts who had expected a drop of 800000 barrels.
Still, the increase was lower than the nearly 9 million barrels reported by the American Petroleum Association (API) on Tuesday, helping to boost oil sentiment, with analysts saying falling gasoline inventories also boosted crude oil futures, which rose about 2 per cent in the US.
However, rising uncertainty in the Middle East has given the biggest boost to crude oil prices.
Andrew Lipow, president of Lipow oil Associates, said: "although crude oil inventories rose faster than expected due to increased imports, oil prices are still supported by geopolitical developments in the Middle East."
Oil prices have been propped up since Saudi Arabia said on Tuesday that armed drones had hit two of the country's refueling pumping stations. Two days ago, several oil tankers were attacked by sabotage in the waters near the United Arab Emirates.
Washington ordered the withdrawal of non-emergency staff from diplomatic missions in Iraq on Wednesday, expressing concern about the threat of Iranian-backed forces.
The oil market on Wednesday also focused on the International Energy Agency (IEA), which said global oil supplies fell in April as sanctioned Iranian production fell and supplies from non-OPEC countries fell, supporting crude prices to a five-month high. In its closely watched monthly oil market report, IEA said global oil supply was down 300000 barrels from the previous month to 99.3 million barrels a day. The agency said this was about 3 million barrels below the high set in November 2018, but up 77.5 barrels from the same period last year.
Other oil products, June RBOB gasoline futures rose $0.0360 to settle at $2.0127 a gallon.
June heating oil futures rose $0.0274 to settle at $2.0863 a gallon.
Baker Hughes will release the weekly drilling report at 01: 00:00 Beijing time on Saturday.