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7/10, 7:01 PM (Source: TeleTrader)
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Oil eyes month-to-date high on US stockpile drop

Crude extended gains on Wednesday after the United States Department of Energy reported a surprising fall in stockpiles in the week through July 5. The Energy Information Agency said commercial inventories were reduced by a stunning 9.5 million barrels, though the volume at Cushing, Oklahoma, an important delivery hub, declined by just 310,000 barrels. The drop in gasoline in reserve by 1.5 million barrels also limited the surge in benchmark futures prices, against downward pressure from a rise of 3.7 million barrels in the distillates segment.

The usage of capacity at refineries jumped half a percentage point week over week to 94.7% and oil imports fell to a 7.3 million barrels per day on average or by 284,000 barrels. The shutdown of at least 15 offshore rigs in the Gulf of Mexico due to an upcoming storm and tensions between the United States and Iran underpinned market valuations.

West Texas Intermediate for settlement next month jumped 3.67% to $59.95 per barrel at 6:49 pm CET after touching $60 for the first time since July 1. Brent for delivery in September was up 3.77% at $66.59 per barrel, also a nine-day high.

Breaking the News / IT