OIL PRICE: $45.5
REUTERS wrote, oil edged further above $45 a barrel on Tuesday as forecasts for a drop in U.S. inventories and speculation of producer action to prop up prices countered concern about a supply glut.
Total U.S. crude inventories were expected to fall by 1 million barrels in weekly reports, although market intelligence firm Genscape has reported a rise of more than 307,000 barrels at the Cushing, Oklahoma U.S. crude delivery hub, traders said.
Brent crude for October LCOc1 was up 13 cents at $45.52 a barrel by 1042 GMT (0642 ET), after rising $1.12 on Monday. The global benchmark fell nearly 15 percent in July. U.S. crude for September CLc1 was up 21 cents at $43.23.
"One can only wonder how long this enthusiasm will last considering the oversupplied fundamental backdrop," said Tamas Varga of oil broker PVM. "Current oil price strength does not feel justified."
OPEC comments helped fuel the gain on Monday. Its president Qatar, in a rare statement issued by the group's Vienna headquarters, said the market was on the path to rebalancing and the drop in prices would be temporary.
OPEC sources have been saying since June that renewed talks about a global output freeze could take place in September, when most members, plus non-members such as Russia, are expected to attend an International Energy Forum meeting in Algeria.
The oil minister for cash-strapped Venezuela sought to keep alive the prospect of producer action to boost prices, saying on Monday a meeting between OPEC and non-OPEC countries may take place "in the coming weeks".
But Russia said it does not see grounds for new talks with OPEC yet. Iran, which refused to join an initiative discussed earlier this year to freeze output levels, has not said whether it would cooperate with any new effort.
Later on Tuesday, the latest round of U.S. inventory reports will be in focus. Analysts in a Reuters poll forecast that U.S. crude stockpiles fell by 1 million barrels last week.
The American Petroleum Institute, an industry group, is due to release its inventory update at 2030 GMT, ahead of the government's report on Wednesday.
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BLOOMBERG - While Europe as a whole gets more than a third of its gas from Russia, that share is lower in the U.K., which receives the bulk of its fuel from North Sea fields and Norway. Still, Moscow-based Gazprom PJSC was the second-biggest supplier to major industrial consumers in the U.K. last year, according to Britain’s energy regulator Ofgem.
FT - of the six LNG tankers that have made deliveries into the UK so far in 2018 three have carried cargoes originally from Russia, leading to questions about whether Moscow was gaining a foothold in the UK gas market after starting up the Yamal LNG facility in Siberia late last year.
REUTERS - So far this year, two Yamal cargoes unloaded at British terminals for domestic consumption, accounting for about a third of Britain’s 2018 LNG imports after typical supplier Qatar pre-sold the bulk of its winter output to Asia last year.
REUTERS - U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $60.77 a barrel at 0753 GMT, up 6 cents, or 0.1 percent, from their previous settlement. Brent crude futures LCOc1 were at $64.62 per barrel, down just 2 cents from their last close.