Read: Depleting strategic oil reserves could prove ‘painful in the months to come’: Saudi energy minister “It is my profound duty to make it clear to the world that losing emergency stock may become painful in the months to come,” he said, after complaining that strategic reserves had been used to “manipulate markets.” Speaking at a conference in Riyadh, Prince Abdulaziz defended the OPEC+ decision to cut oil production by 2 million barrels a day and warned that the depletion of strategic crude reserves by oil-consuming countries could cause economic pain in the months ahead. Other market driversĪnalysts also weighed remarks Tuesday by Prince Abdulaziz bin Salman, Saudi Arabia’s energy minister. The analyst survey had called for decreases of 1.6 million barrels for gasoline and 1.5 million barrels for distillates.Ĭrude stocks at the Cushing, Okla., Nymex delivery hub edged up by 700,000 barrels for the week, the EIA said, while crude stocks in the Strategic Petroleum Reserve fell by 3.4 million barrels. The EIA data showed a weekly inventory decline of 1.5 million barrels for gasoline, while distillate stockpiles edged up by 200,000 barrels. The EIA data was more bullish than the API’s inventory data, and “lower gasoline inventories implies perhaps the economy, and driving, are not as weak as expected,” Michael Lynch, president of Strategic Energy & Economic Research, told MarketWatch. The API reported a climb of 4.5 million barrels in last week’s crude stockpiles, according to a source and news reports. Still, the increase reported by the EIA was smaller than what was reported by industry group the American Petroleum Institute late Tuesday. 21, though on average, analysts had forecast a decrease of 800,000 barrels, according to a poll conducted by S&P Global Commodity Insights. crude inventories rose by 2.6 million barrels for the week ended Oct. The Energy Information Administration on Wednesday reported that U.S. Distillates include heating oil, which is used during the winter heating season to heat homes. Dollar indexįell by 1.2% to 109.638 in Wednesday trading.Īlso, at the end of the day, when you look at the EIA inventories, distillate supplies are still 20% below the five-year average and that’s “definitely giving this market a boost,” Flynn said. Weakness in the dollar can provide a boost to dollar-denominated commodities such as oil. The gains in oil prices Wednesday are “really about the dollar,” Phil Flynn, senior market analyst at The Price Futures Group, told MarketWatch. November heating oilįell 0.1% to $5.606 per million British thermal units. The most actively traded contract, added $2.05, or 2.2%, at $93.79 a barrel.ĭeclined by 0.6% to $2.8994 a gallon after trading as high as $2.976, the highest intraday level since August. The global benchmark, was up $2.17, or 2.3%, at $95.69 a barrel on ICE Futures Europe, the highest since Oct. Rose $2.59, or 3%, to settle at $87.91 a barrel on the New York Mercantile Exchange, the highest front-month contract finish since Oct. West Texas Intermediate crude for December delivery dollar, following official government data showing a weekly rise in crude supplies, along with a drop in gasoline stockpiles. Oil futures settled with a gain on Wednesday, finding support from a retreat in the U.S.
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