Oil Edges Higher on U.S Stockpiles Build and OPEC+ Compliance

Oil Edges Higher on U.S Stockpiles Build and OPEC+ Compliance

Oil Edges Higher on U.S Stockpiles Build and OPEC+ Compliance



(Bloomberg) “” Oil edged higher after a report pointed to a drop in U.S. crude stockpiles and on signs that additional supply from OPEC+ next month won't be as much as previously anticipated.

Futures in New York traded near $40.50 a barrel after closing up 0.5% on Tuesday. The American Petroleum Institute reported that U.S. inventories fell by 8.32 million barrels last week, according to people familiar with the data. That would be the largest drawdown since December if confirmed by official figures due Wednesday, suggesting a supply glut is easing.

OPEC+ is seeking compensatory production cuts in August and September from members that have missed targets in previous months, according to delegates. The proposal, which may temper the impact of the planned supply resumption, will be discussed Wednesday by the group's ministerial monitoring committee.

Crude has traded in a tight range around $40 a barrel this month as less supply and recovering demand is balanced by nervousness over a pandemic that's still not under control in many parts of the world. A deterioration in relations between Washington and Beijing is also clouding the global economic outlook, with the U.S. announcing an end to Hong Kong's special status on Tuesday.

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