Oil prices boost gains after drop in US inventories
U.S. crude oil and fuel stocks fell in the wake of Hurricane Ida. Oil prices climbed Thursday after a larger-than-expected drop in crude inventories in the United States, the world's largest oil consumer and extende the previous day's gains.
Brent crude rose 18 cents, or 0.2%, to $75.64 a barrel at 0340 GMT, after gaining 2.5% the previous day.
West Texas Intermediate (WTI) crude rose 18 cents, or 0.3%, to $72.79 after rising 3.1% on Wednesday.
U.S. crude and fuel stockpiles fell sharply last week as refineries and offshore oil facilities in the U.S. Gulf region, hit by Hurricane Ida, are still recovering, the Energy Information Administration (EIA) said on Wednesday.
The EIA said crude oil inventories fell by 6.4 million barrels per week to 417.4 million barrels on Sept.
The data suggest that the loss of supply from storms in the Gulf of Mexico will offset OPEC's gains.
Ida has shut down a large portion of US Gulf offshore oil and gas production. According to the Bureau of Safety and Environmental Enforcement, about 30% of US Gulf production was closed on Wednesday.
The hurricane caused a global drop in supply for the first time in five months, but as the Organization of the Petroleum Exporting Countries (OPEC) and its allies plan to increase supply, the market is expected to approach equilibrium in October.
Tropical storm Nicholas caused minor flooding and power outages in Texas and Louisiana, where some refineries went offline in the wake of Category-4 Hurricane Ida.
US Gulf Coast companies continue to rally as Nicholas withdraws. Gulf energy companies have made significant headway in their efforts to repair significant damage from Ida, with pipeline services and the rapid recovery of electricity after Hurricane Nicholas also crossed Texas.
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