Oil prices rise after U.S. crude inventory draw

Oil pumping jacks, also known as “nodding donkeys”, operate in an oilfield near Almetyevsk, Tatarstan, Russia, on Wednesday, March 11, 2020. (Bloomberg)

SULAIMANI (ESTA) — Oil prices rose on Thursday, after data showed U.S. crude stockpiles fell last week, while OPEC and its allies were seen complying with their pact to curb output in September.

Brent crude LCOc1 futures rose 48 cents, or 1.11%, to $42.84 a barrel at 0846 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 futures climbed 48 cents, or 0.1.17%, to $40.56 a barrel.

Oil markets jumped for a third day despite a resurgence in coronavirus infections across Europe potentially denting fuel demand, according to Reuters.

“The energy markets are certainly marching to their own drummer at the moment,” Reuters Michael McCarthy, chief market strategist at CMC Markets and Stockbroking as saying, adding that recent oil price volatility may have attracted more trader positions.

The American Petroleum Institute industry group said U.S. crude, gasoline and distillate inventories all fell in the week to October 9, according to a report released after market close on Wednesday.

Crude stockpiles fell by 5.4 million barrels, while distillate stockpiles, which include diesel and heating oil, fell by 3.9 million barrels, Reuters reported.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, together called OPEC+, had 102% compliance with their agreement to cut oil supply in September, two OPEC+ sources told Reuters ahead of a meeting of the OPEC+ technical committee on Thursday to review the oil market.

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