Featured # Markets | 3 years ago

Oil HIkes More Than 2 percent to June Highs on Another U.S. Crude Drawdown

On Wednesday, oil prices reached session highs, increasing to their highest levels since June, after the United States Government reported another unexpected weekly drawdown in crude inventories. Brent crude increased $1.13, or 2.2 percent, at $52 a barrel by 10:58 a.m. EDT (1458 GMT), capping off at $52.09, its highest since June 10. U.S. West Texas Intermediate (WTI) crude advanced $1.20, or 2.4 percent, at $49.89. It earlier reached $49.95, a high since June 29.

The U.S. Energy Information Administration (EIA) said crude stockpiles fell nearly 3 million barrels for the week ended Sept. 30, marking a fifth straight weekly drop. A poll from analysts had projected a accumulation of 2.6 million barrels. But the American Petroleum Institute (API), a trade group, on Tuesday set market projections for an inventory curb by reporting a 7.6 million-barrel decrease.

“Hence positive news has already been baked in the cake, and prices could ease lower from here, especially given the rampant rally of recent days,” stated Matt Smith, analyst at New York-based Clipperdata, which analyses data and impact from crude cargoes and supplies.

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