MELBOURNE- Oil prices rose on Thursday, extending strong gains overnight with fuel demand growing and crude stocks declining as production remains hampered in the US Gulf of Mexico after two hurricanes.
The market was also supported by a broader switch back into risk assets as concerns eased over a potential default by huge property developer China Evergrande and the possible fallout on the world’s second-largest economy.
US West Texas Intermediate (WTI) crude futures rose 13 cents, or 0.2 percent, to $72.36 a barrel, while Brent crude futures rose 17 cents, or 0.2 percent, to $76.36 a barrel.
Both benchmark contracts jumped 2.5 percent on Wednesday after data from the US Energy Information Administration showed US crude stocks fell by 3.5 million barrels to 414 million barrels in the week to Sept. 17, the lowest since October 2018, in a bigger drawdown than analysts had expected.
“Oil fundamentals remain constructive, particularly in the US,” ING commodities strategists said in a note.
In a sign of strong fuel demand as travel bans ease, East Coast refinery utilization rates rose to 93 percent, the highest rate since May 2019, EIA data showed. — Reuters
