A steep drop in US distillation stocks that coincided with an increase in demand for heating oil as the winter semester helped to strengthen oil prices as well.
In contrast to predictions of two million barrels, the US Energy Information Administration said that the distillation products, comprising gasoline and heating oil, had decreased by 4. 9 million barrels to 106. 1 million barrels, the lowest levels since May.
Brent crude futures prices jumped by 31 cents, or 0.
By 06:22 GMT, Brent crude futures had risen $3. 8 or 0. 3 percent to $94. 88 a barrel, while West Texas Intermediate crude futures had risen $3. 6 or 0. 4 percent to $89:47 a barrel.
Oil prices increased, according to Tina Ting, a market analyst at CMC Markets, as a result of the stability in the US dollar’s movements and the robust rebound of risky assets.
She explained that the height may continue, the momentum of recovery in the Asian session today.
She added that lowering OPEC+ will continue to support crude prices, along with a potential recovery of the request in China in the last quarter of the year if Beijing has eased the control restrictions.
The Organization of Petroleum Exporting Countries (OPEC) and other independent oil producers, such as Russia, declared last week that they would limit their daily oil production by two million barrels beginning in November.
The current energy market is plagued by worries about energy security, according to the International Energy Agency’s statement on Thursday.
The agency has reduced its estimates for the growth of oil demand slightly for the current year to 1. 9 million barrels per day, and the amount of 470 thousand barrels per day in 2023 to 1. 7 million barrels per day..
Oil increases as US gasoline stocks fall.
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