Oil prices rose, during trading today, Wednesday, and Brent crude jumped above $ 75, affected by data issued by the American Petroleum Institute indicating a significant decrease in US oil inventories.
Oil prices rose by more than a dollar to continue their overnight gains, after US data showed a significant decline in oil inventories in the wake of two hurricanes, highlighting the tight supply as demand improved.
Oil prices today
By 08:07 AM GMT, Brent crude futures for November delivery jumped 1.17%, to $75.23 a barrel.
The price of futures contracts for West Texas Intermediate crude, for November delivery, rose by 1.33%, to record $71.43 a barrel.
This came after oil prices resumed rising at the end of trading on Tuesday, after a volatile session, to rise again above $70.
During yesterday’s trading, crude prices rose by more than 1.5%, amid fears of a tight supply in the United States, affected by the hurricanes that struck the Gulf of Mexico, but turned downward, before resuming its rise again.
US oil stocks
Oil prices were affected today by the announcement of a decline in US oil stocks in the main storage center in Cushing, Oklahoma, by about 42% so far since the beginning of this year.
A report issued by the US Energy Information Administration, on Tuesday, showed that total crude oil stocks in Cushing, Oklahoma, amounted to 32.9 million barrels.
This is the lowest level since 2018, with the storage center having a storage capacity of 76.6 million barrels, according to the Energy Information Administration, in the week ending September 10.
According to the latest monthly report of the Energy Information Administration, oil inventories in the United States fell by 35 million barrels, equivalent to 1.2 million barrels per day, during last June, recording the largest decline in inventories – including the strategic reserve stock – since the start of data collection in 1981. .
According to the latest OPEC report, commercial oil stocks in the United States fell by 23.8 million barrels last August, on a monthly basis, to 1.244 billion barrels.
The focus of the oil markets has shifted to concerns of a supply shortage after the decline in US oil inventories and the persistence of Chinese real estate group companies.
The Vice President of Kotak Commodities Company, Ravindra Rao, confirmed that the rise in oil prices was supported by the data of the American Petroleum Institute report, which showed a larger-than-expected decline in US oil inventories.
He indicated that oil prices can move with larger markets by focusing on Chinese policy, and the data of the US Federal Reserve to approve its expected monetary policy.
Data from the American Oil Institute indicated that US crude stocks fell by 6.1 million barrels, in the week ending September 17, Reuters quoted market sources as saying.
This drop was higher than what Reuters had expected, based on a poll of 10 analysts, who confirmed at the time that the decline would hover around 2.4 million barrels.
OANDA analyst Jeffrey Haley attributed the continued attractiveness of oil as an alternative to natural gas, which has been witnessing high prices recently.
This comes amid expectations of continued supply shortages, affected by the damage to US offshore oil facilities, especially in the Gulf of Mexico, as a result of hurricanes Ida and Nicholas, which will cause production to be reduced until the beginning of next year, according to data from Royal Dutch Shell.