Oil edges higher as U.S. inventories fall, demand pick up

This aerial photo shows an oil rig in the Gulf of Thailand on Sept. 5, 2019. (AFP)

SULAIMANI (ESTA) — Oil prices edged higher on Tuesday, buoyed by falling U.S. crude inventories and rising winter fuel demand due to one of the worst snowstorms hit the U.S. Northeast in years.

Brent crude settled up $2.58 cents at $57.62 a barrel, while U.S. crude gained $2.61 cents to settle at $54.81.

U.S. government data last week showed a drawdown of 2.3 million barrels in stocks at the Cushing, Oklahoma, delivery hub for crude futures, according to Reuters.

“Crude is being supported by many small factors this week – expected drawdowns in Cushing, a sudden rise in winter fuel demand amid colder weather, and further talks on Capitol Hill about stimulus checks,” Reuters cited John Kilduff, partner at Again Capitol LLC in New York as saying.

The U.S. Northeast has been hit by a powerful winter snow storm, pummeling a vast swath stretching from Pennsylvania through New England and causing widespread disruption in New York City and other major urban centers in the region.

Goldman Sachs said oil prices could rise to $65 by July, forecasting an oil market deficit of 900,000 barrels per day (bpd) in the first half of 2021, Reuters reported.

*This story was updated at 02:07 p.m. EBL time 

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