Rising momentum in oil

Oil rose after four days of losses as an industry report showed shrinking U.S. crude inventories offset hesitant OPEC cuts. U.S. crude rose to around $78 a barrel after falling 2 percent from the previous four sessions. Brent rose above $82. The industry-funded American Petroleum Institute (API) reported that crude inventories fell by 5.5 million barrels last week, according to sources. If U.S. government data later Wednesday confirms, that would be the first decline in seven weeks. The API figures also showed that crude inventories at Cushing, Oklahoma, the delivery point for U.S. crude, fell by almost 1 million barrels. Oil prices fell on Tuesday after OPEC said the latest supply cuts were halted as Iraq exceeded its quota for the second month, but benchmark futures remained stuck in a narrow trading range this year. The API figures “provide a more optimistic outlook for oil demand,” said Jun Rong Yeap, a market strategist at IG Asia Pte in Singapore. “An upward trigger that could help oil futures break out of their narrow range could come in the form of rising geopolitical tensions or a recovery in the Chinese economy.” The Energy Information Administration said on Tuesday that U.S. oil production will rise faster than previously expected this year, helping buffer global supply from OPEC+ cuts. The EIA also raised its 2025 output forecast by 1.2 percent, the EIA said in its Short-Term Energy Outlook.