Oil prices surge as US energy reserves dive
Oil prices rebounded by more than a dollar today after news that stockpiles in the world's biggest energy consumer the United States fell across the board last week.
By Agencies |
LONDON: Oil prices rebounded by more than a dollar today after news that stockpiles in the world's biggest energy consumer the United States fell across the board last week.
New York's main futures contract, light sweet crude for delivery in December, rallied 1.33 dollars to 86.60 dollars. The November contract struck a historic high of 90.07 dollars last Friday.
London's Brent North Sea crude for December jumped 1.22 dollars to 84.07 dollars, after hitting a record peak of 84.88 dollars last Thursday.
Crude prices resumed their upwards march today after the US Department of Energy said that US crude oil stocks dived 5.3 million barrels in the week ending October 19, shocking a market which has expected a gain of 960,000 barrels.
"It's a pretty big draw" in inventories, said Global Insight analyst Simon Wardell.
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"There's so much speculation in the market that's it's quite volatile."Prior to Wednesday, crude futures had fallen for three successive sessions as traders took profits amid worries that slower US economic growth could dampen global demand.
Expectations of rising US energy reserves had pushed prices lower before publication of the DoE report
"The bulls were on the ropes prior to this report but now they're going to be reinvigorated and with some of the other geopolitical tensions we're going to make another assault on 90 dollars for sure," said MF Globa analyst John Kilduff.
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The DoE also added that stockpiles of US distillates, which include diesel and heating fuel, sank by a sharp 1.8 million barrel. Start a SIP with as low as ₹500 with ET Money App!
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