Oil Prices Sustain Growth

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Oil Prices Sustain Growth
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Oil prices sustain growth following drawdown in US stock. On Wednesday, Oil prices climbed after industry data indicated huge drawdown in crude oil stocks in the United States. ( the world’s largest oil consumer.) And on the expectations that, demands will recover as vaccine roll-out widens.

Statistically, Brent crude oil rose 39 cents, or 0.5 per cent, to $73.99 a barrel while U.S. West Texas Intermediate (WTI) crude climbed 44 cents, or 0.5 per cent, to $70.90 a barrel.

On the other hand, U.S. crude oil, gasoline and distillate stocks fell last week. This is according to two market sources. Which cited American Petroleum Institute figures on Tuesday, after Hurricane Ida shut numerous refineries and offshore drilling production.

However, within the week ended on September 10, crude stocks fell by 5.4 million barrels. Although analysts on average had been expecting a drop of 3.5 million barrels.

“The impact of Hurricane Ida was a lot greater than many anticipated. The impact of which could as well make production in the Gulf of Mexico region to struggle to return. Until Tropical Storm Nicholas is done punishing the region with torrential rain,” said Edward Moya senior analyst at OANDA.

It might shock you to also know that, ”Tropical Storm Nicholas moved slowly through the Gulf Coast on Tuesday. Drenching the states of Texas and Louisiana with torrential rain. Flooding streets, and leaving hundreds of thousands of homes and businesses without power.

Although, despite the flooding and power outages, Texas refineries continued to run normally.

The damage from Nicholas comes just two weeks. This is after Hurricane Ida knocked a significant amount of refining capacity offline, in the Gulf Coast this month.

Meanwhile, after a three-month slide in global oil demand. which is due to the spread of the Delta variant of the coronavirus. And renewed pandemic restrictions, hope remains as vaccine roll-outs are set to power a rebound. This is according to the statement issued on Tuesday, by International Energy Agency (IEA) also helping to lift prices.

Details on China’s plans to sell crude from strategic reserves pressured prices. However, with China’s state reserves administration saying it would auction off 7.4 million barrels of crude on September 24.

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