Ripples Advisory, Crude oil prices rise on surprise US crude inventory draw
Oil prices rose on Thursday, lifted by a surprise draw on US crude inventories as well as ongoing dollar weakness which makes oil cheaper in global markets and potentially spurs demand.
US West Texas Intermediate (WTI) crude futures were at $65.27 a barrel at 0122 GMT, up 10 cents, or 0.2 per cent, from their previous close. Brent crude futures were at $69.53 per barrel, up 6 cents, or 0.1 per cent. Both benchmarks are hovering just below their highest levels since early February, having risen around 10 per cent from March lows.
Some support for crude futures came from currency markets, where the dollar fell as Federal Reserve officials stuck to their view of three rate increases for 2018, even as they delivered an expected quarter point rate hike.
In oil markets, US crude inventories fell 2.6 million barrels in the week to March 16, to 428.31 million barrels, the Energy Information Administration (EIA) said late on Wednesday. “Oil ... had a big session overnight although this wasn't just a function of the interest rate move. Inventory data for last week showed a surprise crude draw as well as significant drawdowns in both gasoline and distillates inventories,” said William O'Loughlin, investment analyst at Australia's Rivkin Securities.
Dutch bank ING said the drawdown in US crude inventories was down to a fall in imports by around 500,000 barrels per day (bpd) to an average 7.08 million bpd last week, and a rise in exports by 86,000 bpd to an average 1.57 million bpd. Also, refinery utilisation rates rose above 90 per cent for the first time since early February.
An Exclusive Offer for You Or Stock Market Tips Click Here >> Ripples Advisory
0 comments
Note: only a member of this blog may post a comment.