What made oil prices edge up today?

Highlights

  • Crude oil rises on Wednesday.
  • US crude stocks tumbled to their lowest level in the last three years.
  • Oil facilities in the US Gulf of Mexico have resumed their operations.

Crude oil prices inched higher on Wednesday on the back of falling US crude oil inventories to their lowest level in the last three years amid a robust recovery in refining activity followed by two storms. November delivery Brent Crude oil futures last traded at US$76.03 per barrel up 0.14%, whereas November delivery WTI crude oil futures traded 0.21% down at US$72.08 per barrel as of 23 September 2021 at 10:29 AM AEST.

US crude inventories during the last week tumbled to 414 million barrels, plunging 3.5 million barrels to reach the lowest level since October 2018, as per the US Energy Information Administration. The oil facilities in the US Gulf of Mexico resumed their output to reach 10.6 million bpd by rising 500,000 bpd in the most recent week.

Bottom Line

Crude oil climbs up on Wednesday on the back of significant drop in US crude stocks. A rapid decline in the inventories has been observed due to a solid recovery in the refinery operations, followed by two deadly storms.

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