(Corrects Brent contract to August, not July)
* Trump could pull out of climate accord
* That would boost outlook for fossil fuels -analyst
* U.S. stockpile drawdown helps support oil prices
By Aaron Sheldrick
TOKYO, June 1 Oil futures rose on Thursday from
a three-week low touched the previous session, buoyed by
expectations the United States could pull out of a global
climate accord and by a report that showed U.S. crude stockpiles
had fallen more than expected.
Trump said he would announce later on Thursday a decision on
whether to keep the United States in a global pact to fight
climate change, as a source close to the matter said he was
preparing to pull out of the Paris agreement.
"If he actually withdraws the U.S from the climate accord,
this would signal his intention to further roll-back emission
regulations that would favour the use and demand of fossil
fuels, thus giving a much needed boost to oil prices," said
Jonathan Chan, investment analyst at Phillip Futures in
Brent crude futures for August were up 58 cents, or
0.8 percent, at $51.34 a barrel by 0739 GMT, after trading
On Wednesday, they fell $1.53, or 3 percent, to settle at
$50.31 a barrel. It was Brent's lowest close since May 10 and
the contract dropped 2.7 percent last month, the third monthly
U.S. West Texas Intermediate crude futures were up 64
cents, or 0.8 percent, at $48.96 a barrel.
They dropped $1.34, or 2.7 percent, in the previous session
to settle at $48.32 per barrel, the lowest close since May 12.
The U.S. benchmark also fell for a third month in May, declining
Data from the American Petroleum Institute (API) showed
crude inventories were down by 8.7 million barrels at 513.2
million in the week to May 26. That compared with analyst
expectations for a decrease of 2.5 million barrels.
The U.S. Energy Information Administration (EIA) report on
stockpiles is due at 11:00 a.m. EDT (1500 GMT) on Thursday,
delayed by a day because of the Memorial Day holiday on Monday.
Further gains may be limited for the two major oil
benchmarks as bearish news keeps coming from the Organization of
the Petroleum Exporting Countries (OPEC) and other producers
including Russia that are locked in a battle against rising
shale production in their efforts to boost prices.
Oil futures have given up all the gains posted in advance of
last week's agreement between OPEC and non-OPEC producers to
extend a production cut for a further nine months.
Output from OPEC rose in May, the first monthly increase
this year, a Reuters survey found.
Higher supply from Nigeria and Libya, OPEC members that are
exempt from the production-cutting deal, offset improved
compliance by others.
(Reporting by Aaron Sheldrick; Editing by Joseph Radford and