The global benchmark crude traded at a premium of 26 cents to WTI for July.
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West Texas Intermediate for June delivery, which expires Friday, fell as much as 36 cents to $47.83/bbl on the New York Mercantile Exchange and was at $47.92 at 8:25 a.m. Hong Kong time.
Brent oil reached $49.58 a barrel – the highest point since early November.
That was before Wednesday’s release of the Fed’s April policy meeting minutes that showed the central bank likely to raise rates in June if there was stronger second-quarter growth and firmer inflation and employment.
The price of Brent crude rose to $49.06 yesterday, up by $1.23.
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However, due to the released minutes from the meeting on Central Bank’s policy in April, International Brent crude has already fallen down to $48.80 a barrel, down by about 46 cents, although it was previously – clocking at intraday high of $49.80 – already beating its highest since November of previous year.
“Historically, the API data has been out of sync with the more widely followed EIA”, said Dominick Chirichella, senior partner at the Energy Management Institute in NY.
Oil prices rose on Friday as turmoil in Nigeria, shale bankruptcies in the United States and a crisis in Venezuela all contributed to tightening supplies.
Earlier, a new militant group called the Niger Delta Avengers (NDA) carried out several attacks on key pipelines and facilities operated by oil majors Shell and Chevron, hurting output in Africa’s biggest economy and major crude producer.
This would support the view that excess supply is easing.
IG Markets analyst Bernard Aw said traders are feeling “more bullish” following the Goldman Sachs report that was published last weekend.
“We think people really had a June rate hike off the table”, said Tariq Zahir, crude trader and managing partner at Tyche Capital Advisors in NY.
He also poured cold water on expectations of the outcome of the next meeting of the Organisation of the Petroleum Exporting Countries members on June 2, saying they were unlikely to make a decision on co-ordinated action to prop up the oil market. The contract climbed 1.9 percent this week.
“I expect prices to take a shot at $50”, said Carsten Fritsch, analyst at Commerzbank.
“We suspect the nation’s recent issues could see this fall below 2 million bpd in May”, ANZ said.
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USA crude inventories rose 1.3 million barrels in the week to May 13, compared with analysts’ expectations for a decrease of 2.8 million barrels and a 1.1 million-barrel drawdown reported on Tuesday by a trade group, the American Petroleum Institute.
