US Inventories Drop, Leading to Third Day of Gains for Crude
Crude oil rose today, gaining for the third straight session, as a report showed an unexpected decrease of inventories. At the same time, output rose, but it will likely be met by increasing demand. The general market sentiment was also positive for the commodity.
US stockpiles of crude fell by 2.0 million barrels last week from the week before. The reserves reached 373.1 million barrels and are above the upper limit of the average range for this time of year. The report frustrated analysts as they have expected an increase by 1.9 million barrels.
US oil production reached 6.67 million barrels per day, rising for the eighth week. Consumption will likely keep up with the increasing output as refineries are opening after Hurricane Sandy has passed. Additionally, there was plenty of positive macroeconomic data from the United States, meaning that the US economy is expanding and that should lead to higher fuel consumption.
Crude oil (light sweet) advanced from $86.29 to $86.91 per barrel as of 20:45 GMT on NYMEX today. Meanwhile, futures on Brent crude fell $0.52 (0.48 percent) to $108.18 per barrel on ICE today.
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