Oil prices jump following large draw report on USA crude oil inventories

Oil Prices Gain on Falling U.S. Inventories

Brent crude oil LCOc1 settled up $1.09 a barrel, or 1.5 percent, at $75.82 a barrel.

Negative pressure on the price of oil could emerge from decisions by the office of the U.S. Trade Representative, which has scheduled hearings this week on additional trade pressure on China.

The crude oil futures prices in NY went up by 1.2% as the USA government offered 11 million barrels of oil as a part of the regular draw-down schedule.

On the supply side, US crude oil production rose back to 11 million barrels per day, the EIA report said.

At the same time, concerns about global crude supply intensified with signs that USA sanctions on Iran are curbing shipments.

Stephen Brennock, analyst at PVM Oil Associates, said of traders' reaction on Thursday to the latest tariffs, "Fears are rife that economic headwinds stemming from an escalation in their trade war will ultimately hurt global oil demand". The three fields contribute about 45,000 to 50,000 bpd to the North Sea's Forties and Brent crude streams.

Concerns that an escalating trade war between China and the US could slow economic growth and weigh on crude purchases eased slightly after sources told Reuters that China's Unipec will resume purchases of USA crude oil in October, after a two-month halt due to the fight. US light crude was 3 cents lower at $67.83 a barrel.

Iran, a member of the Organization of the Petroleum Exporting Countries (Opec) and Opec's third-largest oil producer, said earlier this week no other Opec member should be allowed to take over its share of oil exports. The global benchmark crude traded at a $6.90 premium to WTI.

American crude oil stockpiles are predicted to go down by 2 million barrels ahead of the Energy Information Administration's weekly report that is due to be published on Wednesday.

Crude stocks at the Cushing, Oklahoma, delivery hub dropped by 808,000 barrels, the API said.

Meanwhile, a Chinese trade delegation is in Washington to discuss the trade dispute with the US side.

According to a report by the Oxford Institute for Energy Studies, Saudi Arabia is looking at capping upper limits on prices to allay customer concerns and is also putting a floor to ensure revenues stay high.

Related news:

Hot News

isis-killer-beheading-video-story-top John McCain, 'maverick' senator, dead at 81 - Hawaii News Now
Aug 26, 2018 - 18:32
McCain, who died Saturday at age 81, would not be president and would not take Pennsylvania in the 2008 general election. He was a courageous leader who served Arizona and the United States with tremendous pride, dignity and distinction.

isis-killer-beheading-video-story-top Sears close 46 unprofitable stores, two located in Portland area
Aug 24, 2018 - 11:00
Another Kmart will close in West Virginia in the coming months leaving only three of the retail stores left in the Mountain State. Sears Holding announced this week it is closing another 46 locations as it continues to evaluate the future of the company.

isis-killer-beheading-video-story-top West Ham's Pellegrini compares Wilshere to Pirlo
Aug 24, 2018 - 10:58
If we need to improve in this mobility, the quality is very important, but also how the player is moving on the pitch. Remember, this is a man bought in to get us, first of all, back into the Champions League.

isis-killer-beheading-video-story-top Early performances show that Unai Emery got this signing right for Arsenal
Aug 24, 2018 - 08:47
NAIJ.com earlier reported that Premier League side Arsenal were ready to cash in on Super Eagles winger Alex Iwobi this summer. Arsenal are preparing for their third Premier League match of the season on Saturday as West Ham United visit the Emirates.

isis-killer-beheading-video-story-top Britain to US, Europe: 'Go further' to counter Russia
Aug 24, 2018 - 08:45
The Donald Trump administration named additional targets of its North Korea sanctions for the third time this month alone. Reuters says US President Donald Trump has said he has no intention of lifting sanctions against Russian Federation.

isis-killer-beheading-video-story-top War of Attrition Against President Trump | Spengler
Aug 24, 2018 - 08:13
On Tuesday, Cohen detailed how he made pre-election hush payments to porn star Stormy Daniels and Playboy model Karen McDougal . Trump expressed sympathy for Manafort's plight, praising his former campaign aide for not talking to prosecutors, as Cohen has.

Everyone's giving out about Madonna's 'disrespectful' Aretha Franklin tribute
Aug 21, 2018 - 18:11
Madge illuminated the fact that Franklin served as an inspiration to so many burgeoning singers. Madonna later announced Camilla Cabello as the victor of Video of the Year award .

isis-killer-beheading-video-story-top 'The Hills' are returning to MTV
Aug 21, 2018 - 18:10
I don't want any association with those people' after a TV executive reached out to her. "She has a very full and happy life". It's not likely, seeing as she is now busy being a mother to son Liam, 1, and running her lifestyle business.

isis-killer-beheading-video-story-top Spotify Responds To Nicki Minaj’s Allegations Of Unfair Treatment
Aug 21, 2018 - 17:55
Normani sent a message to Nicki Minaj after Nicki stood up for her after Tiffany Haddish's Fifth Harmony shade. Minaj attempted to clarify her statement Monday evening with a second tweet, saying "I said what I said".

isis-killer-beheading-video-story-top Death toll nears 400 in India's flood-hit Kerala, dozens missing
Aug 21, 2018 - 16:42
"We have a special responsibility to help and support those affected, especially during this holy and blessed days", he said. The UAE has offered Rs 700 crore even as the central government announced Rs 500 crore as an emergency relief for the state.

isis-killer-beheading-video-story-top Vladimir Putin signs attends wedding of Austria's pro-Moscow foreign minister
Aug 19, 2018 - 22:45
The United States is against the pipeline and claims it will increase Germany's dependence on Russian Federation for energy. On Iran, the Russian president said he would discuss with Merkel the Iran nuclear deal between world powers and Iran.

isis-killer-beheading-video-story-top Priyanka Chopra Shares Intimate Photos From Her and Nick Jonas's Engagement Ceremony
Aug 19, 2018 - 22:23
Priyanka Chopra is officially off the market. "Wish you both loads of love, happiness and togetherness always", she wrote. Later in the day more Bollywood celebs descended at Chopra's Mumbai residence to celebrate the couple.

Stormy Daniels Reportedly Ditched 'Celebrity Big Brother' Over Dispute With Producers
Aug 17, 2018 - 23:46
Stormy Daniels was set to appear on Celebrity Big Brother but has reportedly ditched the show over a dispute with producers. Channel 5 said they couldn't agree "any acceptable conditions" for her to enter.

isis-killer-beheading-video-story-top Elon Musk Breaks Down During Interview
Aug 17, 2018 - 23:45
At midday, the trend line for Tesla's stock was excruciating as well , registering an 8 percent drop to around $308 a share. After the story published, the Times reported that Tesla contacted the editors to correct Musk's statement about the board.

isis-killer-beheading-video-story-top Spider-Man Gameplay Launch Trailer Released by Insomniac
Aug 17, 2018 - 23:33
When a new villain threatens New York City, Peter Parker and Spider-Man's worlds collide. Last month we got a look at Sony's "Amazing Red" Spider-Man PlayStation 4 Pro bundle .