Crude Oil Futures Close Sharply Higher As Inventories Drop
Crude oil prices rebounded after early weakness on Wednesday as data showed a drop in U.S. crude inventories in the week ended September 25.
Worries about energy demand outlook due to rising coronavirus cases across the world and reports of fresh lockdown measures in several countries weighed on oil prices early on in the session.
Renewed uncertainty over U.S. presidential elections and the Congressional stalemate on a stimulus package also kept traders and investors on tenterhooks.
However, the official data from EIA helped pull oil prices out from the red.
West Texas Intermediate Crude oil futures for November ended up $0.93 or about 2.4% at $40.22 a barrel.
According to the data released by EIA, crude oil stockpiles fell by about 2 million barrels last week, as against expectations for an increase of 400,000 barrels.
Gasoline inventories were up by 0.7 million barrels, while distillate fuel inventories dropped by 3.2 million barrels.
The EIA data also said that crude stored at Cushing, Oklhahoma, dropped by 1.5 million barrels to 263.5 million.
The data said crude inventories are approximately 13% higher than the five-year average for this time of the year.
The American Petroleum Institute (API) reported late Tuesday a draw in crude oil inventories of 831,000 barrels for the week ending September 25 – but this draw was more than offset by a build in gasoline inventories.