Home / Rebounds / Oil rallies after EIA storage data shows unexpectedly large drawdown

Oil rallies after EIA storage data shows unexpectedly large drawdown

Investing.com – Oil prices rallied on Wednesday, after the U.S. Energy Information Administration reported an unexpectedly large U.S. oil inventory drawdown last week.

was up $1.21 or 2.55% at $51.55 a barrel at 10.35 ET.

Global benchmark futures were at $52.73 as barrel, up $1.02 or 1.82%.

Crude oil inventories fell by last week, the EIA said.

That was compared to forecasts for a stockpile build of 2.7 million barrels after a build of 4.9 million barrels in the previous week.

Total U.S. crude oil inventories stood at 468.7 million barrels as of last week.

The report also showed that rose by 0.437 million barrels, compared to expectations for a decline of 1.31 million barrels, while dropped by 1.24 million barrels, compared to forecasts for a decrease of 1.55 million.

The report came after industry group the American Petroleum Institute said late Tuesday that U.S. crude oil stocks fell by a surprise 3.8 million barrels last week. The draw defied expectations for a build of 2.7 million barrels.

Meanwhile, traders continued to ponder a planned output cut by major producers.

The Organization of the Petroleum Exporting Countries announced late last month that it has a preliminary plan to limit production to a range of 32.5 million to 33.0 million barrels per day.

OPEC is expected to complete details of the proposed production cut at its next official meeting on November 30.

But many market analysts remain skeptical of the deal, amid uncertainty over how the agreement would be implemented.

Oil prices had been boosted earlier in the day by the . Oil is priced in U.S. dollars and becomes cheaper to holders of other currencies when the dollar weakens, underpinning demand.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source : All News

Oil rallies after EIA storage data shows unexpectedly large drawdown

Oil rallies after EIA storage data shows unexpectedly large drawdown

About Ali Wael

Leave a Reply

Your email address will not be published. Required fields are marked *