Oil ticks higher on bullish API report, eyes Algeria meeting

Oil prices on both sides of the Atlantic ticked higher in Asia after the overnight data release in US showed falling inventory levels of oil and related products.

At the time of writing, Brent oil was up 0.32% or 15 cents at $46.67/barrel. WTI oil was trading largely unchanged on the day around $44.70/barrel after having clocked a high of $45.08/barrel.

The American Petroleum Institute (API) data showed a draw in US oil inventories of 752,000 barrels contrary to expectations of a build of around 3 million barrels. Distillates saw their first inventory draw in seven weeks, with a drop in inventory of 343,000 barrels. Gasoline inventories dropped 3.7-million-barrel as well.

The immediate focus is on Algeria meeting although experts do not see a major producers reaching production freeze accord. Oil traders would also keep an eye on US government weekly inventory data.