SULAIMANI (ESTA) — Oil prices climbed on Wednesday after industry data showed a larger than expected drawdown in crude oil stocks in the United States and on expectation that demand will recover as vaccine roll-outs widen.
Brent crude oil rose 47 cents to $74.07 a barrel as of 0639 GMT, while U.S. West Texas Intermediate (WTI) crude climbed 48 cents to $70.94 per barrel.
U.S. crude oil, gasoline and distillate stocks all fall last week, two market sources told Reuters, citing American Petroleum Institute figures on Tuesday.
Crude stocks fell by 5.4 million barrels for the week ended on September 10, according to Reuters.
“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,” Reuters quoted Edward Moya, senior analyst at OANDA, as saying.
Meanwhile, the International Energy Agency (IEA) said on Tuesday that vaccine roll-outs are set to power a rebound, hoping to lift prices.
“The big question mark is what the next wave will be like, but optimism is growing that each [coronavirus] wave will be less severe as more countries get their hands on vaccines,” Moya said.
“The oil market remains in deficit and the supply disruptions in the U.S. should keep prices supported in the short-term.”
