Oil climbs after biggest U.S. crude stockpile drop in four weeks
Pubdate：2018-08-23 10:26
Source：JESSICA SUMMERS
Click：
NEW YORK (Bloomberg) -- Oil gained after a U.S. government report showed the biggest decline in crude inventories since late July.
Futures in New York advanced as much as 2.7% on Wednesday. Crude stockpiles fell 5.84 MMbbl last week, the Energy Information Administration reported, above the 5.17-MMbbl decrease the American Petroleum Institute was said to report Tuesday. Crude imports slid by the most in six weeks after two weeks of increases. A weaker dollar also helped support the price of oil.
“The swing in imports is what is driving both last week’s build and this week’s draw,” said Nick Holmes, an analyst at Tortoise in Leawood, Kansas, which manages $16 billion in energy-related assets. “Demand, globally, is holding up.”
Crude has climbed for five straight sessions in New York, yet still holds below the key $70/bbl level reached late last month. A trade war between the U.S. and China threatens demand, while U.S.-imposed sanctions on Iran could further tighten supply levels.
West Texas Intermediate crude for October delivery added $1.50 to $67.34/bbl at 11:08 a.m. on the New York Mercantile Exchange. Total volume traded was about 28% below the 100-day average.
Brent for October settlement climbed $1.49 to $74.12/bbl on the London-based ICE Futures Europe exchange, after earlier rising as much as 2.6%, the biggest intraday jump since late June. The global benchmark crude traded at a $6.79 premium to WTI.
The Bloomberg Dollar Spot Index fell for a fifth day, bolstering the appeal of commodities traded in the U.S. currency, such as oil. The EIA data also showed gasoline and distillate stockpiles increased and supplies at the Cushing, Oklahoma, storage hub rose for a second straight week.
