Tokyo — Oil prices rose on Monday as investors focused on tight market conditions after data late last week showed US crude inventories fell to their lowest in more than three years. Global benchmark Brent rose 37c, or 0.5%, to $77.48 a barrel by 3.05am GMT. US crude futures added 29c, or 0.4%, to $74.09. Official data that came out on Thursday, a day later than normal due to the July 4 public holiday, showed inventories at Cushing, the delivery point for US crude futures, fell to their lowest in three-and-a-half years. "Cushing is clearly screaming out for crude, with the prompt few months more than $2 backwardated," said Virendra Chauhan, an analyst at Energy Aspects in Singapore. Backwardation refers to a market situation that suggests tightness as prices for immediate delivery are higher than those for later dispatch. Investors are also focusing on how much exports from Saudi Arabia and other Gulf states will rise, Chauhan said. Oil cartel Opec agreed in July to a modest increas...
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