September 9 news, traders get rid of the sharp increase in domestic crude oil supply in the United States and the pressure of a slight increase in oil product inventories, crude oil futures rebounded from a one-month low and closed higher.
West Texas Intermediate crude for October futures rose $1.60 to settle at $83.54 a barrel on the New York Mercantile Exchange, up nearly 2% after closing at $81.94 on Wednesday, the lowest since Jan. 11. November Brent crude futures rose $1.15, or 1.3%, to $89.15 a barrel on the Intercontinental Exchange Eurex.
Gasoline rose 1.7% to $2.3461 a gallon in October on the New York Mercantile Exchange, while heating oil fell 1.3% to $3.5401 a gallon in October. Natural gas rose 0.9% to $7.915/MMBtu in October.
Tyler Richey, co-editor of Sevens Report Research, said, “Official U.S. government data showed a massive weekly build in U.S. commercial crude oil inventories, leading to a reflexive drop in oil prices. However, the market quickly stabilized as futures fell a few times on Wednesday. Already in short-term oversold conditions after falling to multi-month lows.” Worries about the outlook for energy demand dragged down crude prices, with U.S. benchmark crude futures down 5.7% on Wednesday.
The strength we’re seeing in the dollar has not helped oil or the broader commodity complex, while there are clear demand concerns,” Warren Patterson, head of commodity strategy at ING, said in a note. express.
U.S. benchmark WTI crude oil fell to a “support zone between $79-$85” on Wednesday, Ritchie said. “Despite some deterioration in global growth concerns and demand, we will continue to expect the market to stabilize in the low $80s as investors digest the latest fundamental changes,” he said.
Oil prices rose despite data from the U.S. Energy Information Administration on Thursday showing an unexpectedly broad build in U.S. domestic oil inventories. U.S. crude inventories rose by 8.8 million barrels in the week ended Sept. 2, the government reported. The increase was due to a 7.5 million barrel reduction in crude inventories from the Strategic Petroleum Reserve, EIA data showed. The data was released a day later than usual due to the Labor Day holiday in the United States on Monday.
“Amid the refinery turnaround season, weak domestic demand and continued SPR releases provide for strong exports and domestic crude inventories to build,” said Troy Vincent, senior market analyst at DTN.
Analysts on average expected the EIA to report a drop in U.S. crude supply by 1.8 million barrels for the week ended Sept. 2, according to a survey conducted by S&P Global Commodity Insights. U.S. crude inventories rose by 3.6 million barrels last week, the American Petroleum Institute said late Wednesday, according to sources and news reports.
Gasoline inventories rose by 400,000 barrels last week, while distillate inventories edged up by 100,000 barrels, the EIA said. Gasoline inventories are expected to fall by 1.5 million barrels and distillate inventories by 1.1 million barrels, S&P Global Commodity Insights showed. Crude oil inventories at Cushing, Oklahoma. The Nymex delivery center fell by 500,000 barrels this week, the EIA said.
Separately, the EIA reported Thursday that U.S. domestic natural gas supplies rose by 54 billion cubic feet for the week ended Sept. 2. That was roughly in line with the average forecast of analysts surveyed by S&P Global Commodity Watch, which called for an increase of 55 billion cubic feet.