Oil rises on bigger-than-expected draw in U.S. fuel stocks
Oil prices climbed on Thursday, reversing previous losses, as a bigger-than-expected draw in U.S. gasoline and distillate stocks prompted buying, News.Az reports citing Reuters.
Prices were also buoyed by expectations that soaring natural gas prices as winter approaches will drive a switch to oil to meet heating demand.
Brent crude futures gained 52 cents, or 0.6%, to $83.70 a barrel at 0330 GMT after falling 0.3% on Wednesday.
U.S. West Texas Intermediate (WTI) crude futures climbed 52 cents, or 0.7%, to $80.96 a barrel, after dropping 0.3% the previous day.
The American Petroleum Institute (API) said on Wednesday U.S. crude stockpiles rose by 5.2 million barrels for the week ended Oct. 8, but gasoline inventories fell by 4.6 million barrels and distillate stocks fell by 2.7 million barrels, according to market sources who saw the API data.
The Organization of the Petroleum Exporting Countries, Russia and their allies, known as OPEC+, earlier this month "reconfirmed the production adjustment plan", referring to a previously agreed deal under which 400,000 barrels per day (bpd) would be added in November. read more
Angola is likely to struggle to meet its OPEC output quota for at least two years, Finance Minister Vera Daves de Sousa told Reuters last month.
Oil prices were also supported by concerns about supply tightness after the U.S. Energy Information Administration (EIA) said on Wednesday that crude oil output in the United States, the world's biggest producer, is going to decline in 2021 more than previously forecast, though it will bounce back in 2022. read more