Oil prices edge up on anticipated US crude stock draw

Oil prices edged higher on Thursday, after industry data showed US crude oil inventories were expected to have fallen last week, signaling tightening supplies on top of extended production cuts in Saudi Arabia and Russia.

US crude oil inventories were projected to fall by 5.5 million barrels in the week ending Sept. 1, according to market sources citing American Petroleum Institute figures released after market settlement.

Official inventory data from the US Energy Information Administration is due at 11 a.m. EDT (1500 GMT) on Thursday.

Brent crude futures edged up 12 cents to $90.72 a barrel by 0019 GMT, while US West Texas Intermediate crude (WTI) futures gained 11 cents to $87.65.

Prices spiked on Tuesday after Saudi Arabia and Russia extended voluntary oil supply cuts to the year-end. The Saudi cuts were by 1 million barrels per day (bpd) while Russia has cut 300,000 bpd. These were on top of the April cut agreed by several OPEC+ producers running to the end of 2024.

Both countries will review market conditions and make monthly decisions on deepening cuts or raising output.