September 22, 2021

Big Fall in US Stocks Causes High Oil Prices

Black commodity trading extended gains overnight after industry data showed a larger -than -expected fall in U.S. crude oil supplies.

US WTI crude futures rose more than 1% to trade at $ 71.25 a barrel.

Meanwhile, Brent crude futures were up 0.9% to around $ 75 a barrel.

The American Petroleum Institute (API) reported a 6.1 million barrel drop in U.S. crude oil supplies last week. The fall was much larger than market expectations for a decline of 2.4 million barrels.

The market is now awaiting official data from the Energy Information Administration (EIA) today to confirm the big drop in oil and fuel inventories.

Production cuts are expected to continue after Royal Dutch Shell, the largest producer in the Gulf of Mexico, said damage to its facilities would cause a reduction until early next year.

Meanwhile, API also reported that petrol inventories fell by 432,000 barrels and distillery stocks decreased by 2.7 million barrels last week.