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Oil extends gains on US crude stockpile data

LONDON, October 5, 2016

Oil prices extended gains on Wednesday after a federal data showed that US crude stockpiles fell for the fifth consecutive week, said a report.

US crude futures for November delivery were up $1.15, or 2.36 per cent, at $49.84 a barrel on the New York Mercantile Exchange. Brent crude, the global oil benchmark, rose $1.09, or 2.14 per cent, at $51.96 a barrel on London’s ICE Futures exchange.

US crude supplies fell by 3 million barrels in the week ended Sept. 30, the Energy Information Administration said Wednesday. Analysts surveyed by The Wall Street Journal had expected the agency to report an increase in crude supplies.

The EIA report showed that gasoline inventories rose by 222,000 barrels, but total supplies of crude oil and refined products fell by 11.2 million barrels.

The decrease in crude supplies, even as refinery utilisation fell from 90.1 per cent to 88.3 per cent, was “certainly bullish,” said John Kilduff, founding partner of Again Capital, said the report.

But some analysts have attributed the falling stockpiles in recent weeks to declining imports, indicating that world-wide glut of crude isn’t actually shrinking. The EIA reported Wednesday that crude imports fell by 125,000 barrels during the week ended September 30, it added.




Tags: Oil | US | crude stockpile |

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