Oil Rises After Lower US Inventories

Oil prices rose in early trading in Asia on Thursday after a large U.S. stock draw tightened the market, while traders kept a close eye to see whether the Federal Reserve would raise interest rates for the first time in almost a decade.

Crude’s firm tone on Thursday comes after prices jumped as much as 6 percent on Wednesday, after U.S. Energy Information Administration data showed the largest crude drawdown in seven months at the key delivery point in Cushing, Oklahoma.

U.S. West Texas Intermediate (WTI) crude futures were trading at $47.26 per barrel at 0032 GMT, up 11 cents from their last settlement. Brent prices were up 5 cents at $49.80 per barrel.

“WTI prices gained the most this month after the EIA reported stockpiles slipped 2.1 million barrels last week as refineries increased operating rates for the first time since July. U.S. refiners typically slow output during September to perform maintenance,” ANZ bank said on Thursday.

Via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza