Oil climbed higher in Asian trade today on expectations a widely monitored US report would show a drop in fuel stocks, analysts said. New York's main contract, light sweet crude for December delivery, gained 50 cents to USD 79.64 a barrel.
Oil climbed higher in Asian trade today on expectations a widely monitored US report would show a drop in fuel stocks, analysts said. New York's main contract, light sweet crude for December delivery, gained 50 cents to USD 79.64 a barrel.
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Brent North Sea crude for January delivery put on 73 cents to USD 79.70 a barrel. Analysts in the US expect the weekly Department of Energy (DoE) report due later today to show a drawdown in storage of distillate fuel, which includes heating oil and diesel.
"The market is showing a surprising strength," said independent oil analyst Ellis Eckland, who is among the analysts tipping a decline in US distillate fuel.
A Dow Jones Newswires poll of analysts forecast that distillate fuel stocks will fall by 500,000 barrels in the past week while crude reserves are seen slipping by 600,000 barrels.
Analysts said the drop in inventory levels could also be exacerbated by Hurricane Ida, which weakened to a tropical storm earlier this month but led to closure of some petroleum installations in the Gulf of Mexico.
The US is the world's biggest energy user and is seen as key to lifting oil demand which has been hit by the global economic slump.
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