Oil futures rise on US stockpile draw, doubts over climate accord

TOKYO: Oil futures rose on Thursday from a three-week low touched the previous session, buoyed by expectations the United States could pull out of a global climate accord and by a report that showed US crude stockpiles had fallen more than expected.
Trump said he would announce later on Thursday a decision on whether to keep the United States in a global pact to fight climate change, as a source close to the matter said he was preparing to pull out of the Paris agreement.
“If he actually withdraws the US from the climate accord, this would signal his intention to further roll-back emission regulations that would favour the use and demand of fossil fuels, thus giving a much needed boost to oil prices,” said Jonathan Chan, investment analyst at Phillip Futures in Singapore.
Brent crude futures for July were up 39 cents, or 0.8 per cent, at $51.15 a barrel by 05:52 GMT, after trading higher earlier.
On Wednesday, they fell $1.53, or 3 per cent, to settle at $50.31 a barrel on their last day as the front-month contract.
It was Brent’s lowest close since May 10 and the contract dropped 2.7 per cent last month, the third monthly decline.
US West Texas Intermediate crude futures were up 40 cents, or 0.8 per cent, $48.72 a barrel.
They dropped $1.34, or 2.7 per cent, in the previous session to settle at $48.32 per barrel, the lowest close since May 12.