Oil Jumps as Big U.S. Gasoline Drawdown Offsets Crude Build

تم نشره في Wed 3 August / Aug 2016. 12:00 AM
  • Rig supervisor David Crow shows off the oil rig he manages foreElevation Resources at the Permian Basin drilling site in Andrews County, Texas, U.S. in this photo taken May 16, 2016. - (Reuters)

NEW YORK — Oil prices jumped about 2 percent on Wednesday, with U.S. crude futures returning above USD40 a barrel, after the U.S. government reported a larger-than-expected gasoline drawdown that offset a surprise build in crude stockpiles.

U.S. crude inventories rose 1.4 million barrels last week, compared with analysts' expectations for a decrease of 1.4 million barrels, the Energy Information Administration reported.

Gasoline stocks slumped by 3.3 million barrels, compared with forecasts for a 200,000-barrel drop.

U.S. West Texas Intermediate (WTI) crude CLc1 was up 70 cents at USD40.21 a barrel by 10:55 a.m. EDT (1555 GMT). On Tuesday, it settled below USD40 a barrel the first time since April.

Brent crude LCOc1 rose 62 cents to USD42.42. It hit a more than three-month low of USD41.51 in the previous day.

"With spot prices getting under USD40 yesterday, we are not surprised to see spot prices rebounding on the gasoline draw. But I think this will be short lived," said Tariq Zahir, trader in crude oil spreads at Tyche Capital Advisors in New York.

"The bottom line is the Street in the second quarter got a little ahead of itself in calling for rebalancing of supply-demand after Canadian and Nigerian supply disruptions. We are going into the third and fourth quarters with those supplies back online and refinery maintenance coming up."