Xinhua, Houston :
The oil prices had an upward movement in the week ending Aug. 24, snapping the 7-week losing streak. Both major benchmarks rallied, and the price of West Texas Intermediate (WTI) and Brent for October delivery increased by 5.4 percent and 5.6 percent, respectively.
Oil prices started the week with slight gains with the news reporting on the renewal of the U.S.-China trade talks. The market has been concerned with the trade tensions between the two largest economies, which would lead to the economic slow-down of the global economy.
On Monday, WTI for October delivery increased by 0.79 percent and settled at 66.43 dollars a barrel on the New York Mercantile Exchange. Brent crude for October delivery increased by 0.60 percent and settled at 72.21 dollars a barrel on London ICE Futures.
On Wednesday, U.S. Energy Information Administration (EIA) reported a large draw of 5.8 million barrels in commercial crude oil inventories. The market was expecting a draw of 1.5 million barrels which was much smaller than the actual report.
EIA also reported on Wednesday that U.S. oil production increased to 11 million barrels per day (mbpd).
EIA reported a build of 1.84 million barrels in distillates inventories which was a little higher than the market’s expectations.
EIA also reported a build of 1.2 million barrels in total gasoline inventories rather than the market’s expectation of a draw of 800,000 barrels.
However, the large draw of the crude oil was the major focus of the market rather than the slight builds of gasoline and distillates. Analysts said that the record-high refinery runs were the main driver for the crude oil draw.
The oil prices had an upward movement in the week ending Aug. 24, snapping the 7-week losing streak. Both major benchmarks rallied, and the price of West Texas Intermediate (WTI) and Brent for October delivery increased by 5.4 percent and 5.6 percent, respectively.
Oil prices started the week with slight gains with the news reporting on the renewal of the U.S.-China trade talks. The market has been concerned with the trade tensions between the two largest economies, which would lead to the economic slow-down of the global economy.
On Monday, WTI for October delivery increased by 0.79 percent and settled at 66.43 dollars a barrel on the New York Mercantile Exchange. Brent crude for October delivery increased by 0.60 percent and settled at 72.21 dollars a barrel on London ICE Futures.
On Wednesday, U.S. Energy Information Administration (EIA) reported a large draw of 5.8 million barrels in commercial crude oil inventories. The market was expecting a draw of 1.5 million barrels which was much smaller than the actual report.
EIA also reported on Wednesday that U.S. oil production increased to 11 million barrels per day (mbpd).
EIA reported a build of 1.84 million barrels in distillates inventories which was a little higher than the market’s expectations.
EIA also reported a build of 1.2 million barrels in total gasoline inventories rather than the market’s expectation of a draw of 800,000 barrels.
However, the large draw of the crude oil was the major focus of the market rather than the slight builds of gasoline and distillates. Analysts said that the record-high refinery runs were the main driver for the crude oil draw.
