Oil Steady After Crude Inventories Fell Less Than Expected

Investing.com – West Texas Intermediate oil was steady in North American trade on Wednesday, as data showed that oil supplies in the U.S. fell less than expected.

for November delivery on the New York Mercantile Exchange rose 0.83% to trade at $70.17 a barrel by 10:33 AM ET (14:33 GMT), compared to $70.16 ahead of the report.

The U.S. Energy Information Administration said in its weekly report that fell by 2.057 million barrels in the week ended Sept. 14. Market analysts had expected a crude-stock decline of 2.741 million barrels, while the American Petroleum Institute late Wednesday reported an increase of 1.2 million barrels.

, the key delivery point for Nymex crude, decreased by 1.250 million barrels last week, the EIA said.

Total U.S. crude oil inventories stood at 394.1 million barrels as of last week, according to a press release, which the EIA said was “3% below the five year average for this time of year.”

The report also showed that decreased by 1.719 million barrels, compared to expectations for a decrease of 104,000 barrels, while rose by 839,000 barrels, compared to forecasts for a rise of 651,000.

Prices of oil have been driven higher in recent months as investors anticipate pressure from U.S. sanctions against Iran. The sanctions, which are expected to go into effect on Nov. 4, have already caused Iran’s crude exports to fall. Crude was also driven higher after comments from Saudi Arabian officials, who said they did not mind Brent going to $80 a barrel to compensate for supply disruptions.

Meanwhile, the U.S.-Sino trade war escalated after China said it would impose new tariffs on U.S. goods worth $60 billion, effective Sept. 24. The new tariffs are in response to U.S. tariffs on Monday of 10% on $200 billion in Chinese goods, which will go up to 25% at the end of the year.

U.S. President Donald Trump previously stated that the U.S. would impose tariffs on another $267 billion of additional imports if China retaliates.

Elsewhere, on the ICE Futures Exchange in London, rose 0.28% to $79.25, while increased 0.65% to $2.0185 a gallon and inched up 0.01% to $2.2360 a gallon.

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