Oil rises as US inventories rise

[size=55][size=35]Oil rises as US inventories rise[/size]
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• [ltr] 05 June[/ltr]
   
  

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  BAGHDAD (Reuters) - Oil prices resumed on Wednesday, hurt by an unexpected rise in US inventories and comments from Russia's state-run oil producer Rosneft, which questioned the feasibility of agreeing to cut supplies with OPEC. Brent crude futures fell 42 cents, or 0.7 percent, to $ 61.55 a barrel by 0552 GMT. US WTI fell 48 cents, or 0.9 percent, to $ 53 a barrel. US crude closed 0.4 percent higher on Tuesday. Oil prices fell sharply on fears of a slowdown in global demand, but received support on Tuesday after the rise in global stock markets backed by hopes to lower US interest rates. US crude inventories rose unexpectedly last week, while gasoline inventories and distillates increased more than expected, the US Petroleum Institute said on Tuesday. Crude stocks increased 3. 5 million barrels in the week ended May 31 to 478 million barrels, compared with expectations of analysts, which indicated a decrease of 849 thousand barrels per day. The US Energy Information Administration is due to release official data later on Wednesday. To prevent supply bottlenecks and price subsidies, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, have been curbing production since the beginning of the year. Producers plan to decide later this month or early July on whether they will continue to restrict supplies. Highlighting fears of oversupply, Russian oil giant Rosneft said Russia should pump as much as it wanted and would seek compensation from the government if the cuts were extended. The US Energy Information Administration is due to release official data later on Wednesday. To prevent supply bottlenecks and price subsidies, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, have been curbing production since the beginning of the year. Producers plan to decide later this month or early July on whether they will continue to restrict supplies. Highlighting fears of oversupply, Russian oil giant Rosneft said Russia should pump as much as it wanted and would seek compensation from the government if the cuts were extended. The US Energy Information Administration is due to release official data later on Wednesday. To prevent supply bottlenecks and price subsidies, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, have been curbing production since the beginning of the year. Producers plan to decide later this month or early July on whether they will continue to restrict supplies. Highlighting fears of oversupply, Russian oil giant Rosneft said Russia should pump as much as it wanted and would seek compensation from the government if the cuts were extended. Producers plan to decide later this month or early July on whether they will continue to restrict supplies. Highlighting fears of oversupply, Russian oil giant Rosneft said Russia should pump as much as it wanted and would seek compensation from the government if the cuts were extended. Producers plan to decide later this month or early July on whether they will continue to restrict supplies. Highlighting fears of oversupply, Russian oil giant Rosneft said Russia should pump as much as it wanted and would seek compensation from the government if the cuts were extended.[/size]