Oil rises on higher-than-expected drawdown in the US crude inventories

Highlights

  • Crude oil climbs up on Wednesday.
  • The government data shows a higher-than-expected drawdown in the US crude inventories.
  • The US crude stocks tumbled to the lowest level since September 2019.

Crude oil prices climbed by more than US$2 per barrel on Wednesday followed by government data showing a higher-than-expected drawdown in the US crude inventories. November delivery Brent Crude oil futures last traded at US$75.34 per barrel down 0.15%, whereas October delivery WTI crude oil futures traded 0.12% down at US$72.12 per barrel as of 15 September 2021 at 10:08 AM AEST.

As per the U.S. Energy Information Administration (EIA) data, the US crude stocks tumbled to the lowest level since September 2019 due to an extended drawdown followed by Hurricane Ida in late August. Additionally, the International Energy Agency (IEA) on Tuesday stated that the rollout of vaccines will enhance the demand, buoying oil prices.

Bottom Line

Crude oil prices rose on Wednesday witnessing a higher-than-expected drawdown in the US crude inventories and on the expectation that demand will increase as vaccination programs widen.

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