Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil prices jump over $2/bbl after drawdown in U.S. stocks

Commodities21 hours ago (Sep 15, 2021 17:34)
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A sticker reads crude oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, U.S. November 22, 2019. REUTERS/Angus Mordant

By Jessica Resnick-Ault

NEW YORK (Reuters) -Oil prices rose over $2 a barrel on Wednesday after government data showed a larger-than-expected drawdown in U.S. crude inventories, and on expectations demand will rise as vaccination roll-outs widen.

U.S. crude oil stockpiles fell last week to the lowest since September 2019, the U.S. Energy Information Administration said, extending their drawdown after Hurricane Ida late August shut numerous refineries and offshore drilling production. [EIA/S]

Brent crude rose $1.86, or 2.5%, to settle at $75.46 a barrel. U.S. West Texas Intermediate (WTI) crude climbed $2.15, or 3.1%, to $72.61 a barrel.

Earlier in the session, Brent touched $76.13 a barrel, a contract high, and the highest outright price since late July.

"Brent and WTI pricing are up strongly today, back near the peaks we hit earlier in the summer," said Pavel Molchanov, an analyst at Raymond James. "Oil momentum has continued ever since late August following Hurricane Ida as the Gulf of Mexico still struggles to fully restore production."

U.S. crude and distillate inventories last week fell more than analysts expected, while gasoline stocks also declined, but fell slightly short of analysts' expectations.

    Crude inventories fell by 6.4 million barrels in the week to Sept. 10 to 417.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.5 million-barrel drop. [EIA/S]

"We have seen large crude and product draws which is supportive to the energy complex," said Tony Headrick, energy market analyst at CHS Hedging. "The tropical storm that just came through slowed down recovery efforts from Hurricane Ida and we will continue to see the effects from Ida for the next few reports."

Tropical Storm Nicholas moved slowly through the Gulf Coast on Tuesday, leaving hundreds of thousands of homes and businesses without power, although Texas refineries ran normally.

Damage from the storm comes two weeks after Ida knocked a significant amount of Gulf Coast refining capacity offline.

"This year’s hurricane season has a much greater and longer-lasting impact on the global oil balance than in previous years," said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.

Oil prices also found support from the International Energy Agency (IEA), which said on Tuesday vaccine roll-outs would power a rebound, after a three-month slide in global oil demand due to the spread of the Delta coronavirus variant and renewed pandemic restrictions.

But oil price gains were capped by a fall in China's crude throughput in August, with daily refinery runs hitting the lowest since May 2020 and overall factory output faltering.

Oil prices jump over $2/bbl after drawdown in U.S. stocks
 

Related Articles

Oil prices steady as U.S. storm threat wanes
Oil prices steady as U.S. storm threat wanes By Reuters - Sep 16, 2021 1

By Devika Krishna Kumar NEW YORK (Reuters) -Oil prices steadied on Thursday after hitting a multi-week high a day earlier as the threat to U.S. Gulf crude production from...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email