Oil Rises on US Stockpile Draw and Hurricane Jitters
08.30.2023 By Tank Terminals - NEWS

August 30, 2023 [Reuters]- Oil prices extended gains on Wednesday after industry data showed a large draw in crude inventories in the U.S., the world’s biggest fuel consumer, and as a hurricane in the Gulf of Mexico kept investors on edge.

 

Brent crude futures for October rose by 42 cents, or 0.49%, to $85.91 a barrel by 0748 GMT. The October contract expires on Thursday and the more active November contract was at $85.32, up 41 cents.

U.S. West Texas Intermediate crude futures rose 50 cents, or 0.62%, to $81.66.

Both benchmarks rallied more than a dollar on Tuesday as the U.S. dollar slid after prospects of further increases to interest rates eased after softer U.S. job data.

U.S. crude stocks fell by a bigger than expected 11.5 million barrels in the week ended Aug. 25, market sources said, citing American Petroleum Institute figures on Tuesday.

The drop suggests firm demand, said Fujitomi Securities analyst Toshitaka Tazawa.

Investors also had an eye on Hurricane Idalia as it moves over the Gulf of Mexico to the east of major U.S. oil and natural gas production sites. The region accounts for about 15% of U.S. oil output and about 5% of natural gas production, according to the Energy Information Administration.

Oil major Chevron Corp (CVX.N) evacuated some staff from the region but production was continuing.

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 in Gabon seized power 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 concerns over fuel demand and the mixed economic situation in China, the world’s biggest oil importer.

Pro Trial: Access 12,600 Tank Terminal and Production Facilities

12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Axalta to Acquire the CoverFlexx Group, a Leading Aftermarket Coatings Business Focused on Economy Customers in North America
05.17.2024 - NEWS
May 17, 2024 [Axalta]- Axalta Coating Systems (NYSE: AXTA), a leading global coatings company, to... Read More
Airport Operator Groupe ADP Invests $20 Million in Sustainable Aviation Fuel Provider LanzaJet
05.17.2024 - NEWS
May 17, 2024 [ESG Today]- Sustainable aviation fuel (SAF) technology and production company Lanza... Read More
Nordsol and Prodeval Announce Groundbreaking Bio-LNG Production Facility in Portugal
05.17.2024 - NEWS
May 17, 2024 [Storage Terminals Magazine]- Nordsol, a pioneer in bio-LNG technology, and Prodeval... Read More
Dow Expands Propylene Glycol Capacity in Thailand
05.17.2024 - NEWS
May 17, 2024 [Dow]- Dow announced the start-up of its propylene glycol (PG) capacity expansion at... Read More