Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Oil Prices Rise 3% After Fourth Straight Decline in U.S. Inventories

Published 07/10/2019, 10:30 AM
Updated 07/10/2019, 11:35 AM
© Reuters.

© Reuters.

Investing.com - Oil prices rose sharply as U.S. crude oil inventories fell for a fourth consecutive week.

The Energy Information Administration said crude oil inventories plummeted by 9.50 million barrels in the week to July 5. That compared to forecasts for a stockpile draw of 3.08 million barrels, after a decline of 1.09 million barrels in the previous week.

U.S. crude prices rose 3.0% to $59.55 a barrel by 11:01 AM ET (15:01 GMT), compared with $59.45 prior to the publication.

London-traded Brent crude futures traded up 3.0% to $66.09 a barrel, compared to $65.86 ahead of the release.

“Another huge weekly draw has compensated for last week’s disappointing numbers in crude, justifying today’s 3% price rally,” said Barani Krishnan, Investing.com's senior commodity analyst.

Oil was already on a tear before today's release. The American Petroleum Institute's late Tuesday report showed an 8.1 million barrel fall in inventories last week.

Also supporting earlier gains was the fact that major producers have begun shutting production in the Gulf of Mexico as a tropical disturbance may become a storm later on Wednesday or Thursday.

“All in, it’s a pleasantly bullish report for the longs, though the other unknowns in supply-demand - i.e. China and the trade war - could rear their head again after this to offset some of the positive impact from this data,” Krishnan said.

The EIA report showed that U.S. output once again ticked up to 12.3 million barrels per day, near record highs.

Latest comments

so price on china good may go up and b,oil was lower. I'd say Bullish then Bearish, tomorrow the bull may win the week
Overall is bearish
No bullish drives despite the draw.
buy on deep
I drove 2000 miles
I drove 1000 miles
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.