Oil Climbs With Inventories Seen Declining at Key US Storage Hub
Oil rose after an industry report that showed a decline in stockpiles at a key US storage hub.
Benchmark Brent traded above $66 a barrel after the American Petroleum Institute reported a 1.8 million-barrel weekly drop at the Cushing hub in Oklahoma, as well as lower oil-product holdings. The API estimated an increase in nationwide crude stockpiles, though they remain near seasonal lows.
Price gains are still capped by the broader outlook for ample global supplies, with OPEC+ ramping up production and the US forecasting record output this year. Russian exports are also close to a 16-month high as Ukrainian drone strikes against refineries cut domestic processing.
“The disconnect continues between paper pricing and the predicted glut in global balances,” said Keshav Lohiya, founder of consultant Oilytics. “We are back to an oil trading world where flat price is firmly in the $65 to $70 world.”
Goldman Sachs Group Inc. reaffirmed its bearish outlook on oil, saying the global market faces an average daily surplus of about 2 million barrels from this quarter through next year. That will drag prices lower, with Brent expected to average $56 a barrel in 2026, analysts including Yulia Grigsby said in a note.
Brent for December settlement climbed 1.3% to $66.28 a barrel at 10:55 a.m. in London
West Texas Intermediate for November delivery advanced 1.4% to $62.59 a barrel
Source : Bloomberg.com
