LONDON, May 31: World oil prices held steady on Thursday as traders digested a surprise slump in US crude stocks, and as supply tensions eased in key producer Nigeria.
Brent North Sea crude for July delivery eased one cent to $67.83 per barrel in electronic deals.
New York’s main oil futures contract, light sweet crude for delivery in July, gained 34 cents to $63.83 per barrel in floor trading.
The US Department of Energy (DoE) said on Thursday that gasoline or petrol stockpiles rose by 1.3 million to 198m barrels in the week ending May 25. That compared with market expectations for an increase of 1.5 million.
However, the DoE added that American crude oil reserves fell by 2.0 million to 342.2 million barrels over the same period.
That confounded analysts’ forecasts for a build of 1.0 million.
“What’s supportive (for prices) is the draw in crude,” said Fimat analyst Antoine Halff.
The report was published one day later than normal owing to the Memorial Day public holiday in the United States on Monday.
Gasoline reserves are currently under pressure from the peak-demand driving season, which began last weekend and sees many Americans hit the highways for their holidays.
US gasoline inventories are flagging as a result of recent refinery problems in leading consumer the United States.
Traders meanwhile drew some comfort from the easing supply situation in Nigeria, which is the world’s sixth biggest crude producer.
Four US nationals kidnapped this month in oil-rich southern Nigeria have been freed, official and diplomatic sources said on Thursday.
Recent unrest in Nigeria has reduced oil output in Africa’s biggest producer by about 25 per cent.—AFP
