Oil Advances on Signs US Stockpile Gains Easing After Harvey

Oil Advances on Signs US Stockpile Gains Easing After Harvey

U.S. West Texas Intermediate (WTI) crude futures were at $50.01 per barrel, up 10 cents, or 0.2 percent, from their last settlement. Late Tuesday, the American Petroleum Institute reported a 1.4 million-barrel increase in stockpiles vs. the 3.5 million-barrel increase analysts were expecting.

Futures jumped 1.9 per cent in NY. West Texas Intermediate (WTI) crude futures settled up 2 cents at $49.91, close to Thursday's near-four month high of $50.50."They're still working out the aftermath of the hurricanes", said John Kilduff, a partner at Again Capital Management in NY.

Some producers think the pact should be extended for three or four months, others want it to run until the end of 2018, while some, including Ecuador and Iraq, think there should be another round of supply cuts, al-Luaibi said. As a result, there was less demand for oil from refineries and more demand for gasoline sitting in storage while less gasoline was being produced That's partly why gasoline prices spiked by almost 20 percent.

Oil rose on signs the pace of USA stockpile gains is slowing as refiners resume operations after Hurricane Harvey, boosting crude demand.

Brent crude futures, the worldwide benchmark for oil prices, were at $55.50 per barrel at 0653 GMT, up 2 cents from their last close.

"While demand seasonality in the summer worked to reinforce the impact of supply restraint by producers, the autumn will work against OPEC's efforts as oil product demand and refinery crude throughputs decline". The global benchmark crude traded at a premium of $US5.60 to November WTI.

"We have more work to do to get supplies back up to normal so that should be very bullish for crude oil", Phil Flynn, senior market analyst at Price Futures Group Inc.in Chicago, said by telephone.

Although the front-month gasoline futures contract that expires next week was little changed at $1.6498 a gallon, later-dated contracts including the more-heavily traded November futures rose.

Commercial crude oil stockpiles rose by 4.6m barrels to reach 472.8m barrels over the week ending on 15 September, according to the Energy Information Administration, the Department of Energy's statistical arm.

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