JEDDAH: Oil prices rose to a one-month high on Thursday after a report yesterday showed US inventories fell last week and about 80 percent of the country’s Gulf of Mexico production remained offline following Hurricane Idaho
Brent crude gained 2.5 percent to $73.34 a barrel at 6:17 p.m. Riyadh time, the highest level since July 30. US West Texas Intermediate added 2.8 percent to $70.49.
US crude oil inventories fell by 7.2 million barrels in the week ended Aug. 27, the EIA said yesterday, compared with a median analyst estimate of 2.8 million barrels.
Oil prices also benefited from continued signs of economic recovery and a weaker dollar. Reports on Thursday showed initial US jobless claims declined last week while layoffs dropped to the lowest level since in more than 24 years in August.
Louisiana oil refineries shut by Hurricane Ida could take weeks to restart, costing operators tens of millions of dollars in lost revenues as they wait for water and electrical power to be restored, analysts said.
Crude output in Venezuela’s key Orinoco oil belt plunged by a quarter to less than 300,000 barrels per day (bpd) in August due to a shortage of diluents needed to blend with the region’s extra-heavy crude, documents seen by Reuters showed.
Oil producer EnQuest (ENQ.L) on Thursday warned that annual output would be at the lower end of its previously forecast range, primarily owing to declines at its Magnus field in the UK’s North Sea, sending its shares down more than 7 percent.
Abu Dhabi National Oil Company (ADNOC) said on Thursday its trading arm has closed a $1.2 billion credit facility with a group of seven local and international banks.
India’s gasoline demand is set to hit a record this fiscal year, with consumption accelerating as more people hit the road for business and leisure travel after easing of COVID-19 curbs.
