Crude oil prices rose slightly, after the Energy Information Administration reported a drawdown on inventories of 1.4 million barrels for the week ending September 30. The EIA also reported large drawdowns on fuel inventories.
The change in crude oil inventories from a modest drawdown of 200,000 barrels the previous week and it came after OPEC+ agreed to a 2 million barrel daily production cut, which was also bullish for prices.
OPEC+ today agreed to cut combined production amid expectations of demand destruction due to the global economic slowdown, in a bid to keep prices at more desirable levels.
The cut was larger than initially expected, but in line with the latest reports from the OPEC+ camp ahead of the meeting in Vienna today.
The price of oil was already up sharply a day before the meeting, with analysts predicting that a production cut could bring the benchmark price back into triple-digit territory as early as the fourth quarter due to the already tight oil situation. supply on the international oil markets.
A day before the EIA released its weekly report, the American Petroleum Institute estimated that crude oil inventories fell 1.77 million barrels in the last week of September, gasoline and distillate inventories means having lost even more during the reporting period.
Gasoline inventories are estimated to have fallen 4.7 million barrels in the last week of September, compared to a draw of 2.4 million barrels the previous week.
Gasoline production averaged 10 million barrels per day last week, down from 9.6 million barrels per day the previous week.
In middle distillates, the EIA reported a drop in inventories of 3.4 million barrels for the week to September 30, compared to a drop of 2.9 million barrels for the previous week.
Middle distillate production averaged 5.2 million bpd last week, up from 5 million bpd a week earlier.
At the time of writing, Brent crude was trading at $91.37 per barrel, with West Texas Intermediate at $86.20 per barrel.
By Irina Slav for Oilprice.com
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