Oil heads for fourth straight quarterly decline
By Ron Bousso
LONDON (Reuters) -Oil prices rose towards $75 a barrel on Friday but were on course for a fourth consecutive quarter of losses amid concerns over sluggish global economic activity and fuel demand.
Benchmark Brent crude futures for September delivery rose 53 cents or 0.7% to stand at $75.04 as of 0827 GMT. The less-traded front-month contract, which expires on Friday, was up 52 cents at $74.86.
The contract was on track for a 6.5% decline in the three months to the end of June, marking a fourth straight quarterly decline. Prices are at their lowest in 2 years.
U.S. West Texas Intermediate crude (WTI) rose 45 cents or 0.6% to $701.31. The contract is down more than 7% on a quarterly basis, its second consecutive quarterly drop.
Inflationary pressure and rising interest rates in key economies and a slower than expected recovery in Chinese manufacturing and consumption have weighed on markets in recent months.
But signs of strengthening U.S. economic activity and sharp declines in U.S. oil inventories offered support.
The U.S. Energy Information Administration (EIA) said crude inventories fell by 9.6 million barrels in the week ended June 23, far exceeding the 1.8-million-barrel draw analysts had forecast in a Reuters poll.
Meanwhile, U.S. gross domestic product (GDP) in the first quarter was revised up to a 2.0% annualised rate from the 1.3% pace reported previously.
«A significant upward revision adds to the list of positive economic surprises in the U.S. lately, with economic resilience aiding to calm some nerves around recession concerns, at least for now,» Yeap Jun Rong, market analyst at IG, said in a note to clients.
The strong U.S. economic data and oil stock drawdown comes as Saudi Arabia is planning
Read more on investing.com
