SINGAPORE May 3 Crude oil prices bounced back
on Wednesday as a decline in U.S. inventories underpinned the
market, although a dip in compliance with OPEC efforts to reduce
output capped gains.
U.S. West Texas Intermediate crude rose 48 cents, or
1 percent, to $48.14 a barrel by 0030 GMT. On Tuesday, the
market slid 2.4 percent to its lowest close since March 21.
Benchmark Brent futures gained 59 cents, or 1.2 percent
to $51.05 a barrel.
U.S. crude stocks fell last week, and both gasoline and
distillate inventories also dropped, data from industry group
the American Petroleum Institute showed on Tuesday.
Crude inventories fell by 4.2 million barrels in the week
ended April 28 to 528.3 million barrels, compared with analyst
expectations for a decrease of 2.3 million barrels. Crude stocks
at the Cushing, Oklahoma, delivery hub fell by 215,000 barrels,
The U.S. government will release its inventory data on
Wednesday at 10:30 a.m. (1430 GMT)
"The supply of crude oil continues to decline. This is
evident in both spot and forward supply data," commodities
brokerage Marex Spectron said in a note.
"Demand remains strong and in spite of lower refinery
profitability we see increasing capacity utilization rates."
Production from the Organization of the Petroleum Exporting
Countries (OPEC) fell for a fourth straight month in April, a
Reuters survey found on Tuesday, as top exporter Saudi Arabia
kept production below its target while maintenance and unrest
cut production in exempt nations Nigeria and Libya.
But more oil from Angola and higher UAE output than
originally thought meant OPEC compliance with its
production-cutting deal slipped to 90 percent from a revised 92
percent in March, according to Reuters surveys.
Brent is trading close to its lowest level since late
November, when OPEC agreed to cut supply.
(Reporting by Naveen Thukral; Editing by Richard Pullin)