Oil Rises, US Stockpiles Shrink & Supply Tightens
Oil prices rose for a second day after an industry report showed US crude inventories fell last week, adding to market signals that supply is tightening. Brent rose 27 cents to $67.27/barrel at 00:05 GMT, while WTI added 28 cents to $63.56/barrel.
Tuesday's gains were driven by a stalled oil export deal from Iraqi Kurdistan, which has kept pipeline flows to Turkey halted. If successful, the deal could restore exports of around 230,000 bpd. Two key producers are seeking debt repayment guarantees before shipments can resume, keeping global supply tight.
API data showed US crude stocks fell 3.82 million barrels in the week ending September 19, gasoline fell 1.05 million, and distillate rose 518,000. Official US government figures are due on Wednesday; consensus expects increases in crude and gasoline, along with a decline in distillate output, to be key indicators of future trends.
Another sign of tightness comes from Chevron in Venezuela: the company can only export about half of the 240,000 bpd it produces with its partners, following new operating authorization rules. This means less heavy, high-sulfur crude from Venezuela heading to the US, adding to the market's perception of increasingly tight supplies.(ads)
Source: Newsmaker.id
