Oil Prices Rise as U.S. Crude Stocks Hit 3.5-year Low

Investing.com – Oil prices climbed on Thursday morning in Asia as data from the Energy Information Administration (EIA) showed U.S. crude inventories fell to a 3.5-year low in the week of Sept. 14.

for November delivery went up 0.59% to $71.19 per barrel at 11:38PM ET (03:38 GMT), while for November delivery also rose 0.24% to $79.59 a barrel.

The EIA reported on Wednesday that crude inventories dropped by 2.1 million barrels, slightly less than expectations of a fall of 2.7 million barrels, while the demand for gasoline in the country rose.

“It was a squarely bullish report. The summer-like demand from drivers is proving unrelenting,” said John Kilduff, partner at Again Capital Management in New York.

Yet, on Tuesday, the American Petroleum Institute (API) released data that showed an increase of 1.2 million barrels in U.S. crude stocks to 397.1 million in the week to Sept. 14.

Bloomberg also reported on Tuesday that Iranian oil exports fell by 35% since May, when U.S. President Donald Trump announced crude sanctions on the oil producer, which will take effect in November.

The OPEC and other non-OPEC members are set to meet on Sunday in Algeria to discuss how to share the supply increases to offset the loss of Iranian supply, but sources told Reuters that no immediate action was planned.

OPEC member Saudi Arabia said on Tuesday that the country is comfortable with oil prices above $80, signaling the largest oil maker might not increase output to send the price down.

Amidst the escalating trade tensions between Washington and Beijing, after Trump announced 10% tariff on $200 billion worth of Chinese products, China retaliated by slapping tariffs on $60 billion worth of U.S. goods, including liquefied .

It could hurt the LNG industry in the U.S., according to S&P Global Platts’ gas and power analytics. “It’s a big deal for the U.S.-China gas trade. The tariffs will push Chinese buyers to other sellers in Asia and the Middle East because the U.S. will no longer be considered a low cost option.”

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