Oil steadies near 7-year high after surprise drop in stockpile
Published 21 Oct,2021 via Bloomberg Markets–Oil steadied near a seven-year high following a surprise draw in U.S. crude stockpiles and a robust decline in fuel supplies.
Futures in New York traded near $83 a barrel after advancing more than 1% on Wednesday to settle at the highest level since 2014. U.S. crude inventories fell by 431,000 barrels last week, according to government data, compared with a Bloomberg survey that had forecast a fourth weekly increase. Gasoline and distillate inventories also decreased more than expected.
The market has tightened significantly recently as coal and natural gas shortages drive greater crude consumption, underpinning a rally in prices. Saudi Arabia said any extra oil from OPEC+ would do little to tame the surging cost of gas, predicting oil demand may rise as much as 600,000 barrels a day if the northern hemisphere’s winter is colder than normal.
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