Melbourne, September 23 (BNA): Oil prices rose today, Thursday, extending their strong gains overnight, with the growth in fuel demand and the decline in crude stocks, as production continued to be hindered in the US Gulf of Mexico after two hurricanes.
The market was also supported by the broader shift to risky assets as concerns eased about a potential default by mega real estate developer China Evergrande and the potential fallout on the world’s second largest economy.
US West Texas Intermediate crude futures rose 13 cents, or 0.2%, to $72.36 a barrel by 0143 GMT, while Brent crude futures rose 17 cents, or 0.2%, to $76.36 a barrel.
Both benchmark contracts jumped 2.5% on Wednesday after data from the US Energy Information Administration showed US crude stocks fell 3.5 million barrels to 414 million barrels in the week ending September 17, the lowest level since October 2018, in a larger decline than analysts had expected. is expected.
“Oil fundamentals remain constructive, particularly in the US,” ING commodity strategists said in a note.
Energy Information Administration data showed that utilization rates for East Coast refineries rose to 93% in a sign of strong fuel demand as travel bans eased, the highest rate since May 2019.
ANZ Research said market sentiment was also supported by higher natural gas prices.
“Lack of gas supply could encourage energy utilities to switch from gas to oil if the winter turns out to be colder this year,” ANZ analysts said in a note.
The rise in oil prices even as the US dollar reached a one-month high came after the US Federal Reserve indicated that interest rate increases could come next year, faster than expected. Oil prices usually fall when the dollar rises as a strong dollar makes oil more expensive for holders of other currencies.
HF