WTI Crude Closes Down 2.6% Despite China Stimulus, Falling U.S. Inventories and Supply Cuts
West Texas Intermediate (WTI) closed with a loss on Wednesday, giving up some day-prior gains that came as China took steps to stimulate its economy while the second Gulf of Mexico storm in two weeks cuts into supply and a report showed a larger than expected drop in U.S. inventories.
WTI crude oil for November delivery closed down US$1.87 to settle at US$69.69 per barrel, while November Brent crude, the global benchmark, was last seen down US$1.66 to US$73.51.
In its weekly survey, the Energy Information Administration reported U.S oil inventories fell by 4.5-million barrels last week, more than the consensus estimate for a drop of 1.1-million barrels, according to Oilprice.com.
The drop in stocks came as Hurricane Francine earlier this month cut production from the Gulf of Mexico. Another storm, dubbed Helene, rose to hurricane strength on Wednesday ahead of landfall in northern Florida on Thursday, according to the National Hurricane Center.
Gulf producers have begun evacuating platforms ahead of Helene's arrival, again cutting into supply. The Bureau of Safety and Environmental Enforcement, the U.S. offshore regulator, reporting 511,000 barrels per day have so far been shut in, 29% of gulf output.
Source: MT newswires
