Selangor Journal
Oil pours out of a spout from Edwin Drake’s original 1859 well that launched the modern petroleum industry, at the Drake Well Museum and Park in Titusville, Pennsylvania US, on October 5, 2017. — Picture by REUTERS

Oil prices jump amid hefty drop in US inventories

NEW YORK, Dec 1 — Oil prices rose noticeably on Wednesday after data showed a marked drop in US crude stockpiles, reported Xinhua.

The West Texas Intermediate for January delivery added US$2.35, or 3 per cent, to settle at US$80.55 a barrel on the New York Mercantile Exchange. Brent crude for January delivery added US$2.4, or 2.9 per cent, to settle at US$85.43 a barrel on the London ICE Futures Exchange.

The US Energy Information Administration (EIA) on Wednesday reported that the nation’s commercial crude oil inventories decreased by 12.6 million barrels during the week ending November 25. Analysts polled by S&P Global Commodity Insights had estimated a fall of 4.4 million barrels in US crude supplies.

According to the EIA, total motor gasoline stocks increased by 2.8 million barrels last week, while distillate fuel inventories increased by 3.5 million barrels.

Traders also looked to the Organisation of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, as the group will meet on December 4. In October, the oil alliance agreed to reduce its output target by 2 million barrels per day from November to shore up prices.

— Bernama

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