Oil rises on expected drop in stockpile

SEOUL: Oil prices rebounded on Tuesday on expectations that inventories in the United States may decline, but increasing US production and concerns that Opec may raise output continue to weigh on sentiment.
Brent crude futures added 25 cents, or 0.33 per cent, to $75.53 a barrel by 0717 GMT, after settling down 2 per cent at $75.29 on Monday.
US West Texas Intermediate (WTI) crude was up 44 cents, or 0.68 per cent, at $65.19 a barrel.
It finished the previous session 1.6 per cent lower at $64.75.
“It’s all about supply, whether it’s Opec raising output or US increasing production, all roads lead to higher global oil supplies, which is leaving oil traders shaking in their boots,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore.
Technical analyst Wang Tao said Brent may test a support at $75.05 a barrel, while WTI may test a support zone of $64.33-$64.41.
“The gains are seen to be a technical rebound from the last session’s losses, but the market’s focus is on the Opec meeting and how much Saudi Arabia and Russia would increase output,” said Kim Kwang-rae, commodity analyst at Samsung Futures in Seoul.
The Organization of the Petroleum Exporting Countries (Opec) is due to meet in Vienna on June 22 to decide whether the group and non-Opec producers, including Russia, will raise output to ease concerns over potential supply shortfalls from Iran and Venezuela.
— Reuters