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Crude Oil Prices Bounce Back Amid Overall Optimism

Published 2017-09-28, 09:02 a/m
© Reuters.  Crude prices move back higher as markets digest U.S. inventories data
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Investing.com - Crude oil prices bounced higher on Thursday, erasing earlier losses, as traders remained globally optimistic regarding the re-balancing of the market despite the release of mixed U.S. data.

The U.S. West Texas Intermediate crude November contract was at a five-month high of $52.61 a barrel, up 48 cents or about 0.86% by 09:00 a.m. ET (13:00 GMT).

Elsewhere, Brent oil for November delivery on the ICE Futures Exchange in London was up 44 cents or about 0.76% at $58.00 a barrel, its highest since July 2015.

Prices found support after the U.S. Energy Information Administration reported on Wednesday that crude oil inventories fell by 1.8 million barrels, after posting hefty increases in each of the last three weeks, as refiners raised output following Hurricane Harvey last month.

However, gasoline stockpiles were up 1.1 million barrels for the week, rising for the first time in four weeks.

The report also showed that domestic crude production edged up by 0.4% to 9.55 million last week, the highest level since July 2015.

Prices have been well supported in recent weeks amid growing optimism that the crude market was well on its way towards rebalancing as data showed strong compliance from major producers with their supply cut agreement.

In May, OPEC and non-OPEC members led by Russia agreed to extend production cuts of 1.8 million barrels per day for a period of nine months until March 2018 in a bid to reduce global oil inventories and support oil prices.

Elsewhere, gasoline futures gained advanced 0.98% to $1.621 a gallon, while natural gas futures declined 0.62% to $3.044 per million British thermal units.

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