Oil prices climb | Sunday Observer

Oil prices climb

19 September, 2021

SINGAPORE (Bloomberg) - Oil jumped amid indications of a rapidly tightening market after a U.S. government report showed a bigger-than-expected decline in crude stockpiles.

US crude futures advanced as much as 3.8% in New York on Wednesday and global benchmark Brent crude topped $75 a barrel for the first time since early August.

Domestic crude stockpiles tumbled to the lowest since September 2019 after losing over six million barrels. That drop exceeded projections by the industry-funded American Petroleum Institute. The data follow the International Energy Agency’s warning that recent supply lost from storms in the Gulf have offset what OPEC and its allies have added, and the world will have to wait until October for more barrels.

“There’s not a lot of new crude supply coming to the market, so the market feels awfully tight,” said Matt Sallee, who helps manage about $8 billion at Tortoise. “That will keep crude prices moving higher. Covid demand worries are taking a backseat for now.”  - World Oil