US Oil Edges Up On Expectations Of Inventory Drawdown
NEW YORK, Aug 11 (Reuters) - U.S. crude oil edged up on Monday on an expectation of further draws in U.S. crude inventory, while Brent trended down despite a number of geopolitical risks.
Brent was weaker despite a number of geopolitical risks carrying over from last week, including President Barack Obama's authorization for the first U.S. air strikes on Iraq since he pulled all troops out in 2011..
Meanwhile, expectations of a draw in U.S. oil stocks supported the higher U.S. crude prices. Traders and analysts are expecting an increase in oil stocks at the Cushing, Oklahoma delivery hub when government data is released later this week.
However, the increase is likely to be short-lived as a number of refineries are coming back online, such as CVR Refining LP 's Coffeyville, Kansas, plant, which will draw down stockpiles.
"U.S. crude closing on Brent is the story, but it's not that big of a surprise because the Kansas refinery should be coming back online in a week or two," said James Williams, an energy economist at WTRG Economics in London, Arkansas. "Traders are anticipating that any build in Cushing inventory will be temporary or minimal at best."
By 2:30 p.m. (1830 GMT), U.S. crude increased 43 cents to settle at $98.08 a barrel, while Brent slipped 34 cents to settle at $104.68 a barrel.
Much of the movement was a result of traders trying to narrow Brent's premium over U.S. crude <CL-LCO1=R>, which widened to as much as $8.10 on Thursday, the most since the end of June.
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