U.S. oil prices climb amid drop in stockpiles, strong gasoline demand

TOKYO (Reuters) - U.S. oil prices extended gains on Thursday amid another drawdown in U.S. crude inventories and strong local gasoline demand, while signs OPEC may not raise output to address shrinking supplies from Iran also buoyed markets.

Reuters September 20, 2018 07:05:17 IST
U.S. oil prices climb amid drop in stockpiles, strong gasoline demand

US oil prices climb amid drop in stockpiles strong gasoline demand

TOKYO (Reuters) - U.S. oil prices extended gains on Thursday amid another drawdown in U.S. crude inventories and strong local gasoline demand, while signs OPEC may not raise output to address shrinking supplies from Iran also buoyed markets.

U.S. West Texas Intermediate crude for October delivery was up 31 cents, or 0.4 percent, at $71.43 a barrel by 0018 GMT, after settling up $1.27.

Front-month London Brent crude, for November delivery , was down 2 cents at $79.38, having ended up 37 cents.

U.S. crude oil stockpiles fell for a fifth straight week to 3-1/2 year lows in the week to Sept. 14, while gasoline inventories also showed a larger-than-expected draw on unseasonably strong demand, the Energy Information Administration said on Wednesday.

Crude inventories fell by 2.1 million barrels, the EIA data showed, compared with expectations for a decrease of 2.7 million barrels.

U.S. sanctions affecting Iran's oil exports come into force on Nov. 4 and many buyers have already scaled back Iranian purchases. But it is unclear how easily other producers can compensate for any lost supply.

The Organization of the Petroleum Exporting Countries and other producers including Russia meet on Sunday in Algeria to discuss how to allocate supply increases within their quota framework to offset the loss of Iranian supply.

OPEC sources have told Reuters no immediate action was planned and producers would discuss how to share a previously agreed output increase.

(Reporting by Osamu Tsukimori; Editing by Joseph Radford)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Pulitzer Prize-winning photojournalist Danish Siddiqui killed in Afghanistan: Politicans, journalists pay tributes
India

Pulitzer Prize-winning photojournalist Danish Siddiqui killed in Afghanistan: Politicans, journalists pay tributes

The Pulitzer prize winner, who was in Kandahar covering operations against Taliban, was killed when he was riding along with the Afghan Special Forces

Indian photojournalist Danish Siddiqui killed during assignment in Afghanistan's Kandahar province
India

Indian photojournalist Danish Siddiqui killed during assignment in Afghanistan's Kandahar province

Siddiqui had also covered the 2020 Delhi riots, COVID-19 pandemic, Nepal earthquake in 2015 and the protests in Hong Kong

Danish Siddiqui's passing is a reminder of the high price one pays for showing the truth
India

Danish Siddiqui's passing is a reminder of the high price one pays for showing the truth

Danish's photographs were not just documentation, but the work of someone who went down to eye-level, as they say in photographic parlance.