Oil Prices Rise on fall in U.S. Crude Stocks

Investing.com – Oil prices rose on Thursday as data showed a fall in U.S. crude stocks in the week to Aug 24.

for November delivery gained 0.2% to $77.63 at 12:45AM ET (04:45 GMT), while  for October delivery also rose 0.2% to $69.68.

Data from the EIA on Thursday revealed that U.S. commercial were down 2.6 million barrels in the week to Aug 24 to 405.8 million barrels.

The American Petroleum Institute (API) reported on Tuesday that crude oil inventories rose by 38,000 barrels to 405.7 million barrels. The API also reportedly said that stockpiles in Cushing, Oklahoma, rose by 130,000 barrels last week.

Meanwhile, traders also assessed the impact of the upcoming U.S. sanctions against Iran, which will start to kick in from November. The expected disruptions to supply from Venezuela also remained in focus.

“The looming sanctions against Iran are beginning to impact oil supply lifting crude prices,” added Alfonso Esparza, analyst at futures brokerage OANDA.

Executive Director of The International Energy Agency (IEA) Fatih Birol told Reuters in an interview on Wednesday that such production uncertainty are likely to tighten the oil markets towards the end of the year.

“Definitely there are some worries that oil markets can tighten towards the end of this year and as major oil importing countries India and other countries need to be ready,” Birol told Reuters after meeting with India’s Oil Minister Dharmendra Pradhan.

His comments came after the IEA warned earlier this month that global oil supply could become “very challenging” when U.S. begins imposing sanctions on Iran.

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