Singapore: Oil prices rose in Asia Thursday on expectations that the latest US stockpiles report will show a further dip in crude reserves as traders worry about a global oversupply, analysts said.
US benchmark West Texas Intermediate for July delivery rose 12 cents to $57.63 while Brent crude for July gained 39 cents to $62.45 in afternoon trade.
The Department of Energy`s weekly petroleum report, usually released on Wednesdays, will be issued on Thursday owing to a public holiday at the start of the week.
"Speculation that US oil inventories could decline again in tonight`s weekly report appears to have attracted some relative support" to prices, said Nicholas Teo, market analyst at CMC Markets in Singapore.
Analysts expect inventories fell for a fourth consecutive week, by 2.0 million barrels, according to a survey by Bloomberg News. The stockpiles currently stand at 482.2 million barrels, just below record highs.
Dealers have been hoping a slowdown in US output, coupled with increased demand during the summer driving season, could whittle down global supplies, which was a key reason for the collapse in prices of more than 50 percent between June and January.
Dealers are also closely monitoring a potential rise in Iraqi oil exports, which could exacerbate the global glut.
"On the global market, Iraq is planning to escalate its export by 26 percent to a record 3.75 million barrels per day in June," said Sanjeev Gupta, head of the Asia-Pacific oil and gas practice at business consultancy firm EY.
"If the planned export is fulfilled, a global glut will persist," he said.
