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Oil Futures Settle Sharply Higher As Inventories Drop Again

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Oil Futures Settle Sharply Higher As Inventories Drop Again

Crude oil prices climbed higher on Wednesday after data showed a larger than expected drop in U.S. crude stockpiles in the week ended September 17.

Data from Energy Information Administration (EIA) showed U.S. crude inventories dropped for a seventh straight week.

West Texas Intermediate crude oil futures for November ended up by $1.74 or about 2.5% at $72.23 a barrel.

Brent crude futures were up $1.58 or 2.08% at $75.94 a barrel a little while ago.

The EIA data showed crude stockpiles dropped by 3.481 million barrels to 414 million barrels last week, the lowest level since October 2018.

Gasoline stockpiles rose by 3.47 million barrels, more than 2.5 times the expected increase, while distillate stockpiles dropped by 2.55 million barrels, more than twice the expected drop.

EIA also said that oil facilities in the Gulf of Mexico continue to return to production, and weekly output rose by 500,000 barrels per day in the most recent week.

Data released by the American Petroleum Institute late on Tuesday showed crude stockpiles in the U.S. dropped by about 6.1 million barrels in the week ended September 17.

The material has been provided by InstaForex Company – www.instaforex.com