Crude climbs on draw in stockpiles in U.S.
While sentiment in the oil market is currently driven by signals from major exporting countries that a global deal on production caps is underway, crude futures strengthened on Wednesday against a backdrop of a reported reduction in inventories in the United States. Today's news that China's economic growth was maintained at a significant pace also benefited demand.
According to data released yesterday, the American Petroleum Institute measured an unexpected and strong drawdown, 3.8 million barrels, in the week through October 14. The volume of distillates has fallen by 2.3 million barrels, although gasoline stocks grew by more than 900,000 barrels. Later today, official information on inventories is due from the U.S. Department of Energy.
The dollar index edged 0.1% to negative territory at 9:51 a.m. CET, slightly helping the rise in oil. West Texas Intermediate for delivery next month rose 1.05% to $50.82 per barrel at ICE Futures Europe. At the same time, Brent for settlement in the month after that climbed 1.06% to $52.23 for one barrel (both 9:42 a.m. CET).