Oil held gains above $70 a barrel as shrinking U.S. stockpiles and declining Iranian output point to tighter markets.
Futures in New York were little changed after a 1.6 percent gain on Wednesday. Government data showed Wednesday U.S. crude inventories fell to the lowest level since Feb. 2015 and stockpiles at the Cushing storage hub declined for the first time in five weeks. Iran’s output dropped in August, though the decline was offset by production increases led by Libya, according to OPEC’s monthly report. Meanwhile, Hurricane Florence continued to threaten fuel markets in the East Coast.
West Texas Intermediate for October delivery traded at $70.19 a barrel on the New York Mercantile Exchange, down 18 cents, at 9:30 a.m. in Tokyo. The contract climbed $1.12 to $70.37 on Wednesday. Total volume traded was about 68 percent below the 100-day average.
Brent for November settlement lost 11 cents to $79.63 a barrel on the ICE Futures Europe exchange after touching $80 for the first time since May on Wednesday. The global benchmark traded at a $9.67 premium to WTI for the same month.
Source : Bloomberg