Oil rose more than 1% after a large drop in U.S. crude stocks

Gas pump at a gas station in Seoul June 27, 2011. REUTERS / Jo Yong-Hak / File Photo

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Singapore, September 22 (Reuters) – Oil prices rose more than 1% on Wednesday, with industry data showing that US crude stocks fell more than expected after two hurricanes last week, highlighting steady supply.

West Texas Intermediate (WTI) crude futures rose from 89 cents or 1.3% to 0516 GMT to $ 71.38, up from 35 cents on Tuesday.

After earning 44 cents on Tuesday, Brent crude rose 88 cents or 1.2% to $ 75.24 per barrel.

The oil market has shifted its focus from tight supply to Monday, following pressure on the stock market on Monday, as Chinese stock maker Evergrand Group (3333.HK) may be on the mend.

Côte d’Ivoire Securities Vice President Ravindra Rao said:

“Prices are ahead of the AIA’s weekly report from today and before the US Federal Reserve’s monetary policy decision.

U.S. oil reserves fell 6.1 million barrels last week (September 17), market sources said Tuesday, according to figures from the US Petroleum Institute.

This was the biggest drop in crude oil production expected by the 10 analysts interviewed by Reuters.

The market monitors data from the U.S. Energy Information Administration to determine the highest droplets and oil reserves in the market.

With a variety of support conditions in the power sector, particularly high natural gas prices, increasing demand for oil as a substitute, and strong physical demand, prices may now be short-lived, ”said Jeffrey Haly. OANDA, a brokerage firm.

Global tropical gas prices are expected to break record this summer, as the tropical heat markets in the northern hemisphere fall sharply. Read more

RDSa.L, the largest producer of the Gulf of Mexico in the United States, said the damage to its shipping facilities would be reduced early next year and that supply was expected to remain strong. Read more

To further strengthen the market, some producers and their affiliates in the Organization of Petroleum Exporting Countries (OPEC), known as OPEC +, are struggling to grow their products to their full potential, sources told Reuters. Most of the shortcomings are in Nigeria, Angola and Kazakhstan. Read more

A report by Singapore’s Sonali Paul and Kustav Samantha in Melbourne; Edited by Richard ull Lin and Tom Hog

Our Standards – Thomson Reuters Principles.

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