WASHINGTON (Pakistan Point News / Sputnik - 16th September, 2021) Stockpiles of US crude oil fell almost double to expectations last week, data from the Energy Information Administration (EIA) revealed on Wednesday, as disruptions from Hurricane Ida continued to force adjustments in the marketplace.
Crude stockpiles dropped by 6.422 million barrels in the week to September 10, the EIA said in its Weekly Petroleum Status Report.
Analysts polled by US media had forecast a drop of 3.544 million barrels. In the previous week to September 3, crude draws hit four-week lows from Hurricane Ida-related disruptions.
The hurricane shut down more than 90 percent of gas production facilities on the US Gulf of Mexico prior to making landfall on August 29. In the aftermath of the hurricane, some production remained shut down and could take time to resume due to flooding and other damage caused by the storm, analysts said.
"Lots of adjustments are needed in the marketplace, with refiners likely compensating one week's smaller draws with a bigger one the following week," John Kilduff, founding partner at New York energy hedge fund Again Capital, said.
Crude oil prices rallied sharply in response to the uptick in draws. New York-traded West Texas Intermediate crude, the benchmark for US oil, was up $2.12, or 3 percent, at $72.58 per barrel by 1:55 p.m. ET (17:55 GMT).
London's Brent, the global benchmark for crude, was up $1.91, or 2.6 percent, at $75.51 per barrel.
"Risks to the upside for crude prices are not going away," Ed Moya, analyst at online trading platform OANDA, said. "Oil's rally is nowhere near over as both demand and supply drivers are still mostly bullish: further delays in making progress with the Iran nuclear deal, a cold winter, and further production disruptions from a very active hurricane season."
Distillate stockpiles, which include diesel and heating oil, fell by 1.688 million barrels in the week against expectations for a draw of 1.612 million barrels, the EIA data showed.
Gasoline inventories declined by 1.848 million barrels last week the EIA said, compared with expectations for a draw of 1.957 million barrels.
