Oil prices climbed on Wednesday after industry data showed a larger than expected drawdown in crude oil stocks in the United States, the world’s largest oil consumer, and on expectations that demand will recover as vaccine roll-outs widen.
But a fall in China’s crude oil throughput in August with daily refinery runs hitting the lowest since last May, and overall factory output faltering, capped oil price gains. read moreBrent crude oil rose 49 cents, or 0.7%, to $74.09 a barrel by 0524 GMT, while U.S. West Texas Intermediate (WTI) crude climbed 48 cents, or 0.7%, to $70.94 a barrel.
U.S. crude oil, gasoline and distillate stocks all fell last week, according to two market sources, citing American Petroleum Institute figures on Tuesday, after Hurricane Ida shut numerous refineries and offshore drilling production. Crude stocks fell by 5.4 million barrels for the week ended on Sept. 10. Analysts on average had been expecting a drop of 3.5 million barrels.
“The impact of Hurricane Ida was a lot greater than many anticipated and production in the Gulf of Mexico region might struggle to return until Tropical Storm Nicholas is done punishing the region with torrential rain,” said Edward Moya, senior analyst at OANDA.
