|
Crude oil tops $75, extends gains on US data
|
|
EIA says crude inventories unexpectedly fall
LONDON: Oil rose above $75 a barrel on Thursday, hitting a three-week high, as it drew strength from a surprise decline in US crude stocks, as well as from stronger-than-expected US job and trade data.
US crude stocks fell 1.85 million barrels, the Energy Information Administration said, less than the 7.3 million drop shown in industry figures on Wednesday. Analysts had expected a 900,000-barrel increase in supplies.
US crude for October was up 79 cents to $75.46 a barrel at 1537 GMT, having earlier hit $75.96, the highest since Aug. 19. Brent crude gained 27 cents to $78.44.
Distillate and gasoline stocks also fell in the week to Sept. 3 as distillate output slipped and total product demand over the last four weeks rose 0.7 per cent year-on-year, according to the EIA report.
"This was a bullish report with drawdowns across the board, and came as a relief to the bulls, especially given the high inventories in the United States right now," said Mike Zarembski of OptionsExpress in Chicago.
Oil drew support earlier in the session from reports showing US claims for unemployment benefits fell more than expected last week to a two-month low, while the trade deficit narrowed sharply in July.
The EIA report released at 1500 GMT followed industry figures late on Wednesday which also showed an unexpected decline in US fuel stockpiles from record levels.
The American Petroleum Institute reported that US crude stocks fell 7.3 million barrels last week.
Both reports were delayed by one day because of the US Labor Day holiday on Monday.
Oversupply and weak demand have been largely a function of a limp economic recovery, and nearly all markets have focused on the same data, seeking evidence of growth.
In its latest assessment, the Organisation for Economic Co-operation and Development said the economy was slowing more than expected and that monetary stimulus should be extended or stepped up if the slowdown persisted. -Reuters
|
|