Brentcrude oilrose towards $50 a barrel on Wednesday as a drawdown in US spending plans, analysts said prices were expected to remain at low levels for some time as other producers, especially in the Middle East and Russian Federation, kept pumping near record levels. Those declines came after the USEnergy Information Administration reported US crude surged nearly 5 percent on signs of declining stockpiles and a fall in drilling activity.
The US benchmark oil contract fell 2.9% in the report week to US$44.59 a barrel on the New York Mercantile Exchange. WTI's October contract CLV5 will expire on NYMEX board as the settlement is due on Tuesday.
It was reported today by Genscape Inc. a provider for energy data that crude stockpiles at the CushingOil Hub fell by 810,000 barrels.
Several banks have recently cut their oil-price forecasts on supply glut worries.