Oil extended gains after the close of the regular trading session on Tuesday, when an industry group reported that weekly crude and fuel inventories fell in America.
New York’s West Texas Intermediate futures rose 0.5%, after the industry-funded American Petroleum Institute reported that crude inventories fell by 5.44 million barrels, while gasoline and diesel together fell by a similar size. Brent crude is trading at $74 a barrel.
Earlier, the trajectory of oil did not change much as investors tracked the movements of the US dollar, and concerns about the threat of Hurricane Nicholas For crude oil supplies in the Gulf of Mexico, the tropical storm did not affect offshore production in the US Gulf, and the storm’s power outage briefly shut down the country’s largest gasoline pipeline that sends fuel from Houston to the Northeast.
US crude futures have been trading around $70 a barrel for most of this month. The International Energy Agency said, on Tuesday, that the world will have to wait until October for additional oil supplies, as production losses from Hurricane Ida wipe out the OPEC + increases.
Global oil demand has fallen since July, as rising COVID-19 cases lead to restrictions on movement in Asia, according to the International Energy Agency.
Nicholas, which hit shore as a Category 1 hurricane and has since lost strength, moved east of the Houston area by mid-morning local time, allowing refiners, chemical makers and other industries to assess the effects of rain and wind.
On the other hand, China said it will conduct its first sale of oil from its strategic reserves on September 24, after announcing the historic move last week. The National Food and Strategic Reserves Administration said in a statement on Tuesday that the initial auction will be for about 7.38 million barrels of crude. This comes amid speculation that the authorities are about to allocate more import quotas to companies.
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