Business

Oil prices head towards $80

Oil prices head towards $80

By Agence France Presse

LONDON: Oil prices climbed towards 80 dollars on Wednesday on expectations that key data will show a drop in fuel stocks in the United States, the world's biggest energy-consuming nation, traders said. New York's main contract, light sweet crude for December delivery, rose 58 cents to 79.72 dollars a barrel. Brent North Sea crude for January delivery gained 57 cents to 79.54 dollars a barrel. Analysts expect a US government report released on Wednesday to show a drop in inventories of distillate fuel, which includes heating oil and diesel. "The market is showing a surprising strength," said independent oil analyst Ellis Eckland, who is among the analysts tipping a decline in distillates. A Dow Jones Newswires poll of analysts forecast that distillate fuel stocks to have fallen by 500,000 barrels in the past week while crude reserves are seen slipping by 600,000 barrels. Analysts said the drop in inventory levels could also be exacerbated by Hurricane Ida, which weakened to a tropical storm earlier this month but led to the closure of some petroleum installations in the Gulf of Mexico. The US is the world's biggest energy user and is seen as key to lifting oil demand which has been hit by the global economic slump.