Oil prices were mostly stable on Wednesday, floating close to a four week high reached a day earlier after the leading exporter, Saudi Arabia, stated that it had made a firm decision to end supply glut.
Brent crude, the international benchmark, was at $58.41, up by 8 cents per barrel by 04:37 GMT. U.S. West Texas Intermediate crude was trading at $52.43 – 4 cents lower
Since January, OPEC, Russia and other producers have decreased oil output by approximately 1.8 million barrel per day. Plans for extending the pact are still in consideration.
According the industry group American Petroleum Institute, U.S. crude stocks were up by 519,000 barrels last week in contrast with analysts’ expectations for a drop of 2.6 million barrels.
Gasoline inventories decreased by 5.8 barrels. Distillate fuel stockpiles, including heating oil and diesel, decreased by 4.9 million barrels with expectations of a 860,000 drop in barrels.
U.S. gasoline futures increased as high as $1.7383 a gallon. Profit margin for gasoline over WTI rose to as much as $18.60 per barrel, the highest in a month.
Crude oil from the Iraqi Kurdistan pipeline to Turkey’s port of Ceyhan increased slightly by 300,000 bpd on Tuesday.
Asian shares went higher on Wednesday. U.S. treasury yields and the dollar were boosted as well after a report that Republican senators were favoring John Taylor to succeed Janet Yellen as the Fed chair. Taylor is viewed as someone who may take the path towards a rate hike.
That helped U.S. benchmark 10 year treasury note yields advance to their highest since March.
The dollar maintained its strength at 113.89 yen, a bit lower than a three month high of 114.10 yen recorded on Monday.
MSCI’s largest index of Asia-Pacific shares outside Japan increased by 0.2 percent.
Nikkei stock index gained 0.1 percent at the end of morning trade. China’s blue chip CSI300 index increased 0.3 percent and the Shanghai Composite Index rose 0.1 percent in early trading.