Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Oil prices rise after U.S. data shows tighter crude supply

Published Aug 29, 2023 09:43PM ET Updated Aug 30, 2023 03:29PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A pump jack is seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson/File Photo
 
LCO
+0.70%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-0.13%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Stephanie Kelly

NEW YORK (Reuters) -Oil prices gained on Wednesday as U.S. government data showed tighter-than-expected crude supplies, while concerns about the Chinese economy limited gains.

Brent crude futures for October rose 37 cents to settle at $85.86 a barrel. The October contract expires on Thursday and the more active November contract was up 33 cents at $85.21.

U.S. West Texas Intermediate crude futures gained 47 cents to $81.63.

On Tuesday, both benchmarks rallied by more than a dollar as the U.S. dollar weakened after soft jobs data reduced the likelihood of further interest rate hikes.

U.S. crude inventories fell by 10.6 million barrels in the last week to 422.9 million barrels, Energy Information Administration data showed on Wednesday. Analysts in a Reuters poll expected a 3.3 million-barrel drop. [EIA/S]

Product supplied of finished motor gasoline - a proxy for demand - was at about 9.1 million barrels per day.

"I would expect (gasoline demand) to fall precipitously from here," said John Kilduff, a partner at Again Capital, as gasoline demand typically peaks in the summer driving season.

Investors kept an eye on Hurricane Idalia, which came ashore as a Category 3 storm on Wednesday morning in a Florida region where the northern panhandle curves into the peninsula. By midday, the hurricane approached southeastern Georgia as a Category 1 storm.

Elsewhere, analysts expect Saudi Arabia, the world's biggest oil exporter, to extend its voluntary output cut into October, keeping oil supply tight.

Based on that expectation, refining sources surveyed by Reuters forecast that Saudi Arabia's official selling prices for all crude grades sold to Asia in October will be raised to their highest this year.

Meanwhile, the military seized power in Gabon on Wednesday, which could hit the country's crude supplies and tighten the market further. Gabon exported a monthly average of 160,000 barrels per day to Asia from May to July, Kpler ship-tracking data showed.

Oil's gains were capped, however, by concern over the mixed economic situation in China, the world's biggest oil importer.

Chinese refiners are poised to boost diesel exports in September to more than 1 million metric tons, drawn by lucrative margins from selling overseas and as they expect to receive more export quotas from Beijing, traders and analysts said.

"The market's interpretation is if they are exporting this much product then things are not going so well with the Chinese economy," said Andrew Lipow, president at Lipow Oil Associates in Houston.

Despite production cuts from Saudi Arabia, Russia and others, other exporters like Venezuela and Iran are filling some of the gap, said Ole Hansen, head of commodity strategy at Saxo Bank.

"Ongoing demand concerns may prevent prices from having a sustained move above $90," he said.

Oil prices rise after U.S. data shows tighter crude supply
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

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

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
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.
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.
Comments (3)
Chris Taylor
Chris Taylor Aug 31, 2023 8:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
$146.81
Sellu Mehanathan
Sellu Mehanathan Aug 30, 2023 10:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Technically Mcx Crude seems to near term spike likely as it has broken falling channel pattern
Prateek Mukim
Prateek Mukim Aug 30, 2023 9:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
all this is a hag , just to inflate oil prices
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
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
Continue with Google
or
Sign up with Email