U.S. Crude Oil


UPDATE 10-Oil rises, near 1-month high; U.S. crude stocks seen down

* Brent, U.S. crude at highest since March 7
    * UK North Sea Buzzard field temporarily halted
    * Market watching for signs of tighter supply
    * U.S. crude stocks fell by 1.8 million barrels last week:

 (Adds U.S. inventory report in paragraph 7)
    By Scott DiSavino NEW YORK, April 4 (Reuters) - Oil prices on Tuesday rose to
a near one-month high, supported by an unplanned production
outage in the North Sea and expectations of a drawdown in U.S.
crude and product inventories.
    Brent <LCOc1> futures rose $1.05, or 2 percent to settle at
$54.17 a barrel. The move higher came after the global benchmark
broke above its 100-day moving average, a key resistance level,
putting the contract into technically overbought territory for
the first time since the end of December.
    U.S. West Texas Intermediate crude <CLc1>, meanwhile, gained
79 cents, or 1.6 percent, to settle at $51.03 per barrel.
    Both contracts ended the day at their highest levels since
March 7. They hit four-month lows late last month but have
recovered 9 percent since then on expectations the Organization
of the Petroleum Exporting Countries (OPEC) and other producers
would cut output under an agreement reached last year.
    "OPEC compliance is still holding better than we expected
with next week's release of various monthly agency reports
likely to confirm," Jim Ritterbusch, president of Chicago-based
energy advisory firm Ritterbusch & Associates, said in a note.
    In the North Sea, production of crude oil from Britain's
180,000 barrel per day Buzzard field was temporarily halted
while repair work is carried out at an onshore processing
terminal, trading sources said, noting normal output should be
restored in the coming day or two. [nL5N1HC3ZC]
    Meanwhile, U.S. crude stocks fell by more than expected last
week, dropping by 1.8 million barrels compared with analysts'
expectations of a 435,000 barrel decline, according to data
released late Tuesday from the American Petroleum Institute.
[API/S] [nZXN04ZI00]
    The U.S. Energy Information Administration will issue its
inventory figures on Wednesday at 10:30 a.m. EDT.
    "U.S. product stocks need to be watched closely, since they
have fallen massively over the last few weeks," said Carsten
Fritsch, commodities analyst at Commerzbank in Frankfurt.
    Yet global inventories remain high. UBS analyst Giovanni
Staunovo said OPEC was taking longer than expected to tighten
the oil market but recent data suggested the process was now
well under way.
    "We believe the implemented production cuts will trigger a
material drawdown in OECD oil inventories and thus higher crude
oil prices," Staunovo said, referring to the Organisation for
Economic Co-operation and Development.
    "We expect Brent oil prices to rise above $60 a barrel in
three months," Staunovo said.

 (Additional reporting by Christopher Johnson in London and Jane
Chung in Seoul; Editing by Marguerita Choy; Editing by David
Gregorio and Andrew Hay)

Read more: http://www.nasdaq.com/article/update-10oil-rises-near-1month-high-us-crude-stocks-seen-down-20170404-01253#ixzz4dMDoH0Y1

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