World Oil Prices Rise After Action From International Energy Agency

Equityworld Futures - Oil prices edged higher in late trade on Friday morning (20/01), after the International Energy Agency said the oil market has tightened even before the agreed cuts by OPEC and other producers began to take effect. But the rise in bearish sentiment limited swelling US crude inventories.

US crude oil futures prices West Texas Intermediate closed up 29 cents or 0.6 percent at $ 51.37 a barrel, after falling to a one-week low on Wednesday at $ 50.91 per barrel.

Crude futures international benchmark Brent rose 34 cents, or 0.6 percent, to $ 54.26 a barrel at 14:33 ET (1933 GMT), after closing down 2.8 percent in the previous session.

The IEA said that while it is too soon to measure the OPEC member compliance with promised cuts and commercial oil inventories in developed countries fell for the fourth consecutive month in November, with another decline projected for December.

Crude oil prices fell to session lows after data Energy Information Administration (EIA) showed US crude inventories rose unexpectedly last week as refineries cut production sharply.

Commercial crude oil inventories rose 2.3 million barrels in the week to 13 January to 485.5 million barrels, well above expectations for a decline 342,000 barrels.

The data also showed a much bigger-than-expected increase in gasoline inventories and a surprise decline in distillate inventories. Gasoline inventories in the US East Coast swell to a record high weekly rate for the current yearly basis, when refiners typically begin saving a barrel ahead of the summer driving season.

Oil prices have spiraled this year as the market's focus has swung from expectations that the excess can be overcome by production cuts announced by the Organization of Petroleum Exporting Countries and other producers to concerns that the rebound in US shale production could swamp any such derogation.

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