API data shows 5.1-million-barrel drop in crude supplies
by Jenny W. Hsu
Crude oil prices marched toward $50 in early Asian trade Wednesday as investors anticipate a likely decrease in the U.S. crude inventories and ongoing supply outages elsewhere in the world, which could curtail global supply.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in July CLN6, +1.03% traded at $49.38 a barrel, up $0.76, or 1.6% in the Globex electronic session, the highest intraday level since mid-October when prices was last above $50. July Brent crude LCON6, +1.01% on London’s ICE Futures exchange rose $0.72, or 1.5%, to $49.33 a barrel.
U.S. oil prices have surged more than 85% from their mid-February lows on expectations that the global crude glut that sent prices plunging in mid-2014 is set to shrink. Production has started to fall in some regions including the U.S. due to spending cuts, and unexpected outages in other countries are keeping additional barrels off the market.