Oil prices at two-month highs on tight supplies
Oil prices rose on Thursday, supported by growing fuel demand and a draw in U.S. crude inventories as production remained hampered in the Gulf of Mexico after two hurricanes.
Brent crude advanced 1.39% to settle at $77.25 a barrel. U.S. West Texas Intermediate (WTI) crude rose gained 1.48% to settle at $73.3 per barrel.
Both contracts jumped 2.5% on Wednesday after data from the U.S. Energy Information Administration showed U.S. crude stocks in the week to Sept. 17 fell by 3.5 million barrels to 414 million - the lowest total since October 2018. [EIA/S]
Oil also found some support as several members of the Organization of the Petroleum Exporting Countries (OPEC) and allies, collectively known as OPEC+, struggled in recent months to raise output due to years of under-investment or delays to maintenance work because of the coronavirus pandemic.
Iraq’s oil minister said on Wednesday OPEC+ was working to keep crude prices close to $70 per barrel as the global economy recovers. The group will meet on Oct. 4.
The oil market was also supported by a return of appetite for risk assets as concerns eased over a possible near-term default by Chinese property developer China Evergrande on its dollar bonds.
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