Oil Holds Above $ 75 As Lower U.S. Inventories Support

Crude oil storage tanks are seen in an aerial photograph at the Cushing Oil Hub in Cushing, Oklahoma, USA, April 21, 2020. REUTERS / Drone Base / File Photo

  • U.S. crude and fuel inventories drop in the wake of Hurricane Ida
  • IEA, OPEC see 100 million bpd of oil demand in months
  • U.S. Gulf Coast businesses resume recovery as Nicholas backs down
  • Soaring gas prices in Europe also support oil – analyst

LONDON, Sept. 16 (Reuters) – Oil fell but remained above $ 75 a barrel on Thursday, following a nearly seven-week high reached a day earlier, supported by a sharp drop in prices. US crude inventories and global demand recovery expectations.

U.S. crude inventories fell 6.4 million barrels last week, more than analysts had expected as offshore oil facilities were still recovering from Hurricane Ida.

The United States is the world’s largest consumer of oil.

Brent crude was down 9 cents, or 0.1%, to $ 75.37 at 8:15 am GMT. Brent hit $ 76.13 on Wednesday, its highest level since July 30. US West Texas Intermediate (WTI) lost 4 cents to $ 72.57.

Brent rose 46% this year, supported by supply cuts by the Organization of the Petroleum Exporting Countries and its allies, and some recovery in demand after last year’s pandemic collapse .

“The recovery from the destruction caused by the coronavirus is truly underway,” said Tamas Varga of oil broker PVM. “Generally speaking, the world is on the mend.”

Adding to signs of recovery in demand, closely watched reports this week indicated that global oil consumption would exceed 100 million barrels per day, a level last seen in 2019, as early as the second quarter of the year. next. Read more

Oil is also supported by soaring electricity prices in Europe, which have skyrocketed due to a host of factors, including low gas stocks and a below-normal gas supply from Russia. . Read more

Soaring gas prices and the impact on oil “is a situation that I think will get worse before it gets better,” said Jeffrey Halley, analyst at OANDA brokerage.

The weight of oil was a sign of a resumption of recovery efforts in the Gulf of the United States after Hurricane Nicholas, which was downgraded to a tropical depression.

U.S. Gulf energy companies were able to quickly restore pipeline service and electricity, allowing them to redouble their efforts to repair the greater damage caused by Ida. Read more

Additional reporting by Jessica Jaganathan and Roslan Khasawneh; edited by Jason Neely

Our Standards: The Thomson Reuters Trust Principles.

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