Oil advances after report points to declining US stockpiles
Oil in New York rose toward $53 a barrel as an industry report pointed to a drop in US crude stockpiles, adding to signs of easing supply.
Futures climbed 0.7% after slipping on Tuesday. The American Petroleum institute reported inventories fell by 5.27 million barrels last week, according to people familiar. If confirmed by government data on Wednesday, that would be the sixth draw in seven weeks. Broader financial markets are also awaiting the Federal Reserve monetary policy decision after its first meeting this year.
Prompt time spreads for the US benchmark and global Brent are in a bullish market structure and firming, indicating shrinking supplies. With the market switching to backwardation, “we are hopeful that 2021 will be a good year,” OPEC Secretary-General Mohammad Barkindo said.
