Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil Rally Continues as Inventories Drop 4.8M

CommoditiesSep 05, 2019 11:48AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com - A larger-than-expected drawdown in U.S. oil stockpiles added to bullish sentiment and kept prices higher midmorning Thursday.

Oil inventories declined by 4.77 million barrels last week, the Energy Information Administration reported. Analysts predicted that inventories fell by about 2.49 million barrels for the week ended August 30, according to forecasts compiled by Investing.com.

WTI Futures climbed 2.4% to $57.62 at 11:43 AM ET (15:43 GMT). It was trading around $57 just before the release at 11 AM ET.

Brent, the global benchmark for oil, rose 2.7% to $62.31.

Gasoline inventories fell by 2.4 million last week, compared with expectations for a drop of about 1.52 million barrels.

Distillate stockpiles, which include heating oil, posted a surprise drop of 2.54 million. Analysts were predicting a rise of about 0.48 million barrels.

“These are all round positive numbers that should please oil bulls,” Investing.com analyst Barani Krishnan said. “The last hurrah before Labor Day for crude draws seems to have come indeed, at nearly 5 million barrels, or double that of the decline expected. And you have a near-2.5 million-barrel drop in both the fuels category, with distillates being the runaway since the expectations there were for a build.”

But the draws “occurred on the back of imports rising back above the weekly bellwether of 6 million bpd,” Krishnan added. “And you still have exports at a sterling 3 million bpd, squeezing another draw out of Cushing. Production remains near record highs at 12,.4 million bpd, though.”

Oil prices were climbing before the release of the inventory data, with bulls encouraged by the U.S. and China agreeing to more trade talks in October.

The trade battles between the two top economies, and the uncertainty about the impact on global oil demand, has been pressuring oil prices.

The talks were agreed to over the phone, the Chinese Commerce Ministry said, which was confirmed by a spokesman for the U.S. Trade Representative's office. No terms of the talks were given.

Looking ahead, sentiment will “depend on how the U.S.-China rhetoric fares in coming days,” Krishnan added. “Despite today’s bullish news of talks resuming in October, if recent trends in oil are any guide, be prepared for more volatility ahead.”

Oil Rally Continues as Inventories Drop 4.8M
 

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.

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 (4)
Hank Williams
Hank Williams Sep 05, 2019 2:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Can't wait to see which bank backs the Aramco manipulation.
Hank Williams
Hank Williams Sep 05, 2019 2:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why don't we just flat line oil at $55 since that what WS and public oil and oil related companies agreed to nine months ago to be used in corporate budgets.
Hank Williams
Hank Williams Sep 05, 2019 11:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The wealthy have agreed with OPEC to slow the roll out of EV to the middle class since it would devastate the middle east economies. Crude will continue to trade at huge premiums as long as WS can keep bleeding the middle class.
Barani Krishnan
Barani Krishnan Sep 05, 2019 11:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Totally with you on that, Hank.
Hank Williams
Hank Williams Sep 05, 2019 11:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
See Saw
Barani Krishnan
Barani Krishnan Sep 05, 2019 11:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
More volatilty ahead.
Singh Raju
Singh Raju Sep 05, 2019 11:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Barani Krishnan  reason ?? u mean brent up or down.
 
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
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
or
Sign up with Email