US Oil Stocks Fall, Prices Rise Higher

 Black commodity trading continued to maintain strengthening momentum after industry data showed a big drop in U.S. crude oil supplies.

Brent crude futures climbed higher at $ 74 a barrel towards the end of the Asian session, while US WTI traded stronger at $ 70.90 a barrel.

According to the American Petroleum Institute (API), U.S. crude oil, gasoline and refining inventories all fell last week after Hurricane Ida shut down many production operations in the Gulf of Mexico.

Crude oil supplies fell significantly by 5.4 million barrels in the week ended Sept. 10, compared to expectations for a decline of 3.5 million barrels.

The next focus will shift to the official report of the U.S. crude oil inventory from the Energy Information Administration (EIA) today.

While production operations in the region have not yet recovered, it now faces the threat of tropical storm Nicholas which will continue to impact U.S. oil supplies.

Meanwhile, the strengthening of prices was also supported by the International Energy Agency (EIA) which said progress in vaccination efforts around the world would drive a recovery in global fuel demand.

Previous Post Next Post