(Oct 5 Reuters) Oil rose towards $52 a barrel on Wednesday, hitting its highest since June, supported by an industry report that U.S. inventories probably fell for a fifth straight week and OPEC's deal to cut supply.
The American Petroleum Institute (API)said on Tuesday that U.S. crude inventories dropped 7.6 million barrels, which would be the fifth straight weekly decline if confirmed by U.S. Energy Information Administration (EIA) data on Wednesday. (API/S)
Brent crude was trading at $51.74 a barrel, up 87 cents at 0948 GMT. The global benchmark touched $51.81 during the session, its highest since June 10. U.S. crude was up 81 cents at $49.50.
Another drop in U.S. crude stocks would reinforce the vew that the supply glut that has been weighing on prices since 2014 is easing. The API data, however, does not always tally with the EIA data, which is due at 1430 GMT. Analysts expect a rise in crude stocks of 2.6 million.
"If the (EIA) can confirm the API statistics and help crude oil break away from the resistance of the high of August, then crude oil will have to start targeting the high of June," said Oliver Jakob, analyst at Petromatrix.
Jeffrey Halley, senior market analyst at brokerage OANDA in Singapore, said another confirmed drawdown in crude stocks would likely push U.S. crude above $50.
Brent has risen from below $49 on Sept. 28, when the Organization of the Petroleum Exporting Countries agreed a surprise cut in its output to support prices which are less than half the level of mid-2014.
Click on the link below to see the full story from Reuters: (by Alex Lawler)