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Oil prices climb on tightening U.S. market

Published 2018-07-03, 08:45 p/m
© Reuters.  Oil prices climb on tightening U.S. market
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* U.S. fuel inventories drop amid Syncrude Canada outage

* Outside N.America, markets eye looming sanctions against Iran

By Henning Gloystein

SINGAPORE, July 4 (Reuters) - Oil prices edged up on Wednesday, lifted by a report of declining U.S. fuel inventories amid the ongoing crude supply outage at Syncrude Canada in Alberta, which usually supplies the United States.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $74.60 a barrel at 0044 GMT, up 46 cents, or 0.6 percent, from their last settlement. WTI the previous day hit its highest since November 2014 at $75.27 a barrel.

Brent crude futures LCOc1 were at $77.82 per barrel, up 6 cents from their last close.

Trading activity is expected to by limited on Wednesday due to the U.S. Independence Day holiday.

U.S. crude inventories fell by 4.5 million barrels in the week to June 29 to 416.9 million barrels, according to the American Petroleum Institute (API) on Tuesday. Gasoline and distillate stocks, which include diesel and heating oil, were also down, the API said. said the decline in fuel inventories was largely down to the outage at Syncrude Canada's 360,000 barrels per day (bpd) oil sands facility near Fort McMurray, Alberta, which is expected to last through July. North America, looming U.S. sanctions against major oil exporter Iran were the focus of attention.

The U.S. government plans to shut Iran's oil exports out of the market from November, demanding that all countries stop buying its oil.

To make up for potential shortfalls in supply from Iran sanctions as well as other disruptions including Libya and Venezuela, the Organization of the Petroleum Exporting Countries (OPEC) has agreed with Russia and other oil-producing non-OPEC members to raise output from July. Iran, however, has warned it would not accept other producers reaping the benefits by taking its market share.

Iran's President Hassan Rouhani on Tuesday said it was "unwise to imagine that some day all producer countries will be able to export their surplus oil and Iran will not be able to export its oil."

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