Oil prices rise after report of big draw in U.S. crude stocks

Workers are seen near pumpjacks at a China National Petroleum Corp (CNPC) oil field in Bayingol, Xinjiang Uighur Autonomous Region, China August 7, 2019. (Reuters)

SULAIMANI (ESTA) — Oil prices rose on Wednesday, extending overnight gains after industry data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes.

Brent crude futures climbed $1.06 to $75.42 a barrel at 0516 GMT, after gaining 44 cents on Tuesday.

U.S. West Texas Intermediate (WTI) crude futures rose $1.11 to $71.60 per barrel, adding to a 35-cent gain from Tuesday.

“Crude is supported by API weekly report which noted a bigger-than-expected decline in U.S. crude oil stocks,” Reuters quoted Ravindra Rao, vice president of commodities at Kotak Securities, as saying.

“Prices are still rangebound ahead of EIA weekly report due later today and ahead of U.S. Federal Reserve’s monetary policy decision … In the near term, crude may move with larger markets with focus on China and Fed policy.”

U.S. crude stocks fell by 6.1 million barrels for the week ended Sept. 17, market sources said, citing figures from the American Petroleum Institute on Tuesday, according to Reuters.

That was a much bigger decline than the 2.4 million-barrel drop in crude inventories that 10 analysts polled by Reuters had expected on average.

The market will be watching for data from the U.S. Energy Information Administration on Wednesday to confirm the big drops in crude and fuel stocks.

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