Stockpiles of US crude oil fell more than expected for a second week in a row, Energy Information Administration (EIA) data showed on Wednesday as disruptions from Hurricane Ida continued to force adjustments in the marketplace
WASHINGTON (Pakistan Point News / Sputnik - 22nd September, 2021) Stockpiles of US crude oil fell more than expected for a second week in a row, Energy Information Administration (EIA) data showed on Wednesday as disruptions from Hurricane Ida continued to force adjustments in the marketplace.
Crude stockpiles dropped by 3.48 million barrels in the week to September 17, the EIA said in its Weekly Petroleum Status Report. Analysts polled by US media had forecast a drop of 2.45 million barrels. In the previous week to September 10, crude draws ballooned to 6.422 million barrels, almost double to expectations due to Ida-related disruptions.
Ida shut down more than 90 percent of oil and gas production facilities on the US Gulf of Mexico prior to its landfall on August 29. As of Sept. 21, more than three weeks after the hurricane, nearly 16% of oil production on the Gulf, accounting for 320,909 barrels equivalent, remained shut-in due to complications caused by the storm.
"Production is coming back but it hasn't been as swift as thought," John Kilduff, founding partner at New York energy hedge fund Again Capital, said. "We should see more normalcy in the next couple of weeks or so."
Crude oil prices rallied in response to the second weekly uptick in draws. New York-traded� West Texas Intermediate crude, the benchmark for US oil, was up $1.40, or 2 percent, at $71.89 per barrel by 12:15 p.m. ET (16:15 GMT).
London's Brent, the global benchmark for crude, was up $1.44, or 1.9 percent, at $75.80 per barrel.
Distillate stockpiles, which include diesel and heating oil, fell by 2.55 million barrels last week against expectations for a draw of 1.11 million barrels, the EIA data showed. In the previous week, distillate inventories fell by 1.69 million barrels.
Gasoline inventories bucked the downtrend, rising by 3.47 million barrels, the EIA said, compared with expectations for a draw of 1.47 million barrels. In the previous week, gasoline stockpiles fell 1.86 million.
