Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Oil rises on bigger-than-expected draw in U.S. fuel stocks

    Oil rises on bigger-than-expected draw in U.S. fuel stocks

    October 14, 2021
    Share
    Facebook Twitter LinkedIn WhatsApp
    *Oil prices up

    Tokyo — Oil prices climbed on Thursday, reversing previous losses, as a bigger-than-expected draw in U.S. gasoline and distillate stocks prompted buying.

    Prices were also buoyed by expectations that soaring natural gas prices as winter approaches will drive a switch to oil to meet heating demand.

    Brent crude futures gained 52 cents, or 0.6%, to $83.70 a barrel at 0330 GMT after falling 0.3% on Wednesday.

    U.S. West Texas Intermediate (WTI) crude futures climbed 52 cents, or 0.7%, to $80.96 a barrel, after dropping 0.3% the previous day.

    “A larger-than-expected drop in the U.S. gasoline and distillate inventories led to fresh buying,” said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd.

    The American Petroleum Institute (API) said on Wednesday U.S. crude stockpiles rose by 5.2 million barrels for the week ended Oct. 8, but gasoline inventories fell by 4.6 million barrels and distillate stocks fell by 2.7 million barrels, according to market sources who saw the API data.

    Analysts in a Reuters poll expected crude inventories to rise by 0.7 million barrels, but gasoline stocks to drop by 0.1 million barrels and distillate to decline by 0.9 million barrels.[EIA/S]

    “With OPEC+ sticking to an existing pact for a gradual increase in oil output and some OPEC countries missing to reach their quota, supply will remain tight and oil prices will stay on a bullish trend at least until next OPEC+ meeting,” Saito said.

    The Organization of the Petroleum Exporting Countries, Russia and their allies, known as OPEC+, earlier this month “reconfirmed the production adjustment plan”, referring to a previously agreed deal under which 400,000 barrels per day (bpd) would be added in November.

    Angola is likely to struggle to meet its OPEC output quota for at least two years, Finance Minister Vera Daves de Sousa told Reuters last month.

    Oil prices were also supported by concerns about supply tightness after the U.S. Energy Information Administration (EIA) said on Wednesday that crude oil output in the United States, the world’s biggest producer, is going to decline in 2021 more than previously forecast, though it will bounce back in 2022.

    “Investors also bet that surging gas prices will encourage power generators to switch to oil as winter demand season is approaching,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

    “The current tightness in the crude market and near-term outlook for seasonal demand increases lent support to investors’ sentiment, outweighing weaker demand forecast by OPEC,” Kikukawa said.

    The OPEC trimmed its world oil demand growth forecast for 2021 in its latest monthly report on Wednesday, while maintaining its 2022 view.

    However, the producer group said rising natural gas prices could boost demand for oil products as end users switch fuels.

    The EIA will release its inventory report later on Thursday at 11 a.m. EDT (1500 GMT).

    *Yuka Obayashi; Editing: Christian Schmollinger & Kim Coghill – Reuters

    Related News

    Oil prices rally as United States sanctions on Venezuela ease supply worries

    Oil prices climb to 2-month high on US-China trade deal, worries about Iran supply

    Nigeria partners Brazil to develop methanol complex 

    Nigeria says divestment paying off as oil output rises

    Comments are closed.

    E-book
    Resilience Exhibition

    Latest News

    Oil prices climb to 2-month high on US-China trade deal, worries about Iran supply

    June 11, 2025

    Kenya central bank lowers 2026 growth forecast to 5.4%

    June 11, 2025

    Nigeria partners Brazil to develop methanol complex 

    June 11, 2025

    FG to train 100,000 youths annually in forex trading

    June 11, 2025

    China, Africa ask US to return to ‘right track’ on trade differences

    June 11, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.