Singapore: Oil prices climbed in Asian trade on Thursday as signs that a refineries strike in the US is weakening overshadowed a rise in US crude stocks, analysts said.
US benchmark West Texas Intermediate (WTI) added 29 cents to USD 51.82 a barrel and Brent gained six cents to USD 60.61 in late-morning trade.
Daniel Ang, an investment analyst with Phillip Futures in Singapore, said despite the rise in US inventories, traders focussed on signs that a refineries strike the the US could be settled, allowing more crude oil to be processed.
"Although they have not come to a conclusion (on ending the strike) it seems that workers are coming back to work, which shows weakness in the strike and suggests that the strike is coming to an end soon," he told AFP.
Workers and management are trying to end the strike at three major US refineries operated by Royal Dutch Shell following a stalemate on February 20.
More than 5,000 workers spread across around a dozen installations have been on strike since February 1 demanding improved wages and safety conditions.
The US Department of Energy (DoE) yesterday said commercial crude inventories jumped by 10.3 million barrels in the week February 27, higher than analyst forecasts.
Inventories have set new records for five straight weeks, and US oil production is already high at 9.3 million barrels per day.
Sanjeev Gupta, who heads the Asia-Pacific Oil and Gas practice at professional services firm EY, said the oil market is also closely watching developments in the talks between Iran and the US on Tehran's nuclear ambitions.
"Any positive news about likelihood of lifting of sanctions will lead to downward pressure on the price of Brent," Gupta said.
