Reuters: LondonThe world’s largest fuel user, the United States, saw its oil inventories significantly shrink on Wednesday, according to industry statistics, while a hurricane in the Gulf of Mexico had investors on edge.
By 0748 GMT, the price of October Brent crude futures increased by 42 cents, or 0.49%, to $85.91 per barrel. The more active November contract, which is due to expire on Thursday, was at $85.32, up 41 cents.
West Texas Intermediate futures for the United States increased by 50 cents, or 0.62%, to $81.66.
On Tuesday, both benchmarks increased by more than a dollar as the U.S. currency fell and the likelihood of more interest rate increases decreased as a result of weaker U.S. job statistics.
In the week ending August 25, U.S. crude stocks decreased by a larger-than-anticipated 11.5 million barrels, according to market sources, who cited estimates from the American Petroleum Institute on Tuesday.
According to Toshitaka Tazawa, an analyst at Fujitomi Securities, the decline signals strong demand.
Investors were also keeping a watch on Hurricane Idalia as it passed to the east of significant U.S. oil and natural gas production facilities over the Gulf of Mexico. The Energy Information Administration estimates that the region produces 5% of the country’s natural gas and 15% of its oil.
Chevron Corp, a large oil company, evacuated some employees from the area, although production continued.
Analysts predict that Saudi Arabia, the largest oil exporter in the world, will continue its voluntary output cut until October, keeping the oil supply limited.
The official selling prices for all oil grades sold to Asia in October by Saudi Arabia are expected to be increased to their highest levels this year based on that anticipation, according to refinery sources surveyed by Reuters.
Chevron Corp, a large oil company, evacuated some employees from the area, although production continued.
Analysts predict that Saudi Arabia, the largest oil exporter in the world, will continue its voluntary output cut until October, keeping the oil supply limited.
The official selling prices for all oil grades sold to Asia in October by Saudi Arabia are expected to be increased to their highest levels this year based on that anticipation, according to refinery sources surveyed by Reuters.