The drop in U.S crude inventories and
President Donald Trumps’ sanctions on Iran have escalated crude oil
price, selling at $75 per barrel.
President Donald Trumps’ sanctions on Iran have escalated crude oil
price, selling at $75 per barrel.
While the global benchmark, Brent crude,
rose $1.38 to $74.19, the highest since August 8, the United States
crude gained $1.28 to $67.12 per barrel.
rose $1.38 to $74.19, the highest since August 8, the United States
crude gained $1.28 to $67.12 per barrel.
The American Petroleum Institute reported
US crude stocks fell last week by 5.2 million barrels, more than three
times the decline analysts expected.
US crude stocks fell last week by 5.2 million barrels, more than three
times the decline analysts expected.
Oil also found support from a weak
dollar, which has slipped this week in response to US President Donald
Trump’s comment that he was “not thrilled” by the Federal Reserve’s
interest rate increases.
dollar, which has slipped this week in response to US President Donald
Trump’s comment that he was “not thrilled” by the Federal Reserve’s
interest rate increases.
A weaker dollar makes oil less expensive for buyers using other currencies.
The prospect of a drop in oil exports
from Iran, the third-largest producer in the Organisation of the
Petroleum Exporting Countries (OPEC), in response to new US sanctions
was also supporting the market.
from Iran, the third-largest producer in the Organisation of the
Petroleum Exporting Countries (OPEC), in response to new US sanctions
was also supporting the market.
European oil companies have started to
cut back on Iranian purchases, although Chinese buyers are shifting
their cargoes to Iranian-owned vessels to keep supplies flowing.
cut back on Iranian purchases, although Chinese buyers are shifting
their cargoes to Iranian-owned vessels to keep supplies flowing.
Iran has warned that it would hit US and
Israeli targets if it were attacked by the US after Trump’s security
adviser said Washington would exert maximum pressure on Tehran going
beyond economic sanctions.
Israeli targets if it were attacked by the US after Trump’s security
adviser said Washington would exert maximum pressure on Tehran going
beyond economic sanctions.
OPEC has started to boost supplies
following a deal with Russia and other allies in June, although
producers have been cautious so far.
following a deal with Russia and other allies in June, although
producers have been cautious so far.
Saudi Arabia told OPEC it cut supply in July, rather than increasing output as expected.
Signs of tighter supply countered concern
about slowing oil demand stemming partly from the trade dispute between
the United States and China, the world’s two largest economies.
about slowing oil demand stemming partly from the trade dispute between
the United States and China, the world’s two largest economies.
US and Chinese officials were set to resume talks Wednesday, but Trump said he expected there would be no real progress
Meanwhile, the US crude stocks fell last
week, while refined petrol and distillate inventories rose, the Energy
Information Administration (EIA) confirmed Wednesday.
week, while refined petrol and distillate inventories rose, the Energy
Information Administration (EIA) confirmed Wednesday.
Crude inventories fell by 5.8 million
barrels in the last week, compared with analysts’ expectations for an
decrease of 1.5 million barrels.
barrels in the last week, compared with analysts’ expectations for an
decrease of 1.5 million barrels.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 772,000 barrels, EIA said.
Refinery crude runs fell by 89,000 barrels per day, EIA data showed. Refinery utilisation rates remained unchanged.
Gasoline stocks rose by 1.2 million barrels, compared with analysts’ expectations in a Reuters poll for a 488,000-barrel drop.
Distillate stockpiles, which include
diesel and heating oil, rose by 1.8 million barrels, versus expectations
for a 1.5 million barrels increase, the EIA data showed.
diesel and heating oil, rose by 1.8 million barrels, versus expectations
for a 1.5 million barrels increase, the EIA data showed.
Net US crude imports fell last week by 1.1 million barrels per day.
