Oil rises in Asian trade

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Published Apr 15, 2015

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Tokyo - Oil prices climbed in Asia for the fifth straight trading day on Wednesday following forecasts that US shale production could decline and help ease a global supply glut, analysts said.

The US benchmark, West Texas Intermediate for May delivery, gained 26 cents to $53.55 and Brent crude for May rose 43 cents to $58.86 in late-morning trade.

The US Energy Information Administration said on Monday that output from the country's seven shale regions, which has driven production to a record high, looked set to fall by 57 000 barrels per day in May.

Analysts said a decline should help ease the global crude oversupply, which led to a collapse in prices of more than 50 percent between June and January.

“Starting from this week, we have been seeing forecasts of lower oil production suggesting that current oil production should be dropping already,” said Daniel Ang, investment analyst with Philip Futures in Singapore.

But United Overseas Bank said there could be a “price reversal” after the release later on Wednesday of the weekly US crude stockpiles report.

Analysts expect it to show another increase, pointing to weaker demand in the world's biggest oil-consuming nation.

AFP

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