Breaking News

Oil jumps to session highs as crude stocks drop 1.9M barrels

CommoditiesSep 28, 2016 10:34AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Oil prices extend gains as US crude stockpiles fall by 1.9M barrels

Investing.com - Oil prices extended gains in North American hours on Wednesday, rising to the strongest levels of the session after data showed that crude supplies in the U.S. fell for the fourth week in a row.

Crude oil for November delivery on the New York Mercantile Exchange rose 64 cents, or 1.43%, to $45.31 a barrel by 10:35AM ET (14:35GMT). Prices, which were at around $45.40 prior to the release of the inventory data, spiked to $45.77 immediately after the report.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 1.882 million barrels in the week ended September 23. Market analysts' expected a crude-stock gain of 3.0 million barrels, while the American Petroleum Institute late Tuesday reported a supply drop of 752,000 barrels.

Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, decreased by 631,000 barrels last week, the EIA said.

Total U.S. crude oil inventories stood at 502.7 million barrels as of last week, which the EIA considered to be “historically high levels for this time of year”.

The report also showed that gasoline inventories increased by 2.027 million barrels, compared to expectations for a gain of 178,000 barrels.

For distillate inventories including diesel, the EIA reported a decline of 1.915 million barrels.

Elsewhere, On the ICE Futures Exchange in London, Brent oil for December delivery tacked on 62 cents, or 1.3%, to $47.12 a barrel as investors waited to see if any kind of oil output deal can be salvaged from a meeting of major oil producers in Algeria.

OPEC members, led by Saudi Arabia and other big Middle East crude exporters, such as Iran and Iraq, will meet non-OPEC producer Russia on the sidelines of the International Energy Forum in Algeria at 14:00GMT (10:00AM ET) Wednesday.

There were hopes that major global oil producers could agree to a possible last-minute output freeze deal that would support the market.

However, according to market experts, chances that the meeting would yield any action to reduce the global glut appeared minimal. Instead, most believe that oil producers will continue to monitor the market and possibly postpone freeze talks to the official OPEC meeting in Vienna on November 30.

An attempt to jointly freeze production levels earlier this year failed after Saudi Arabia backed out over Iran's refusal to take part of the initiative, underscoring the difficulty for political rivals to forge consensus.

Oil jumps to session highs as crude stocks drop 1.9M barrels

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email