Oil shoots over 3% as US crude stock adds to supply concerns, Brent over $96/bbl
Oil prices jumped 3 per cent on Wednesday, September 27, after official data showed that US crude stocks fell more than expected, adding to worries of supply tightness amid production cuts by the Organisation of Petroleum Exporting Countries and its allies (OPEC+). High crude oil prices add to weak global cues for the Indian stock markets and may add to selling by foreign investors in Indian equities.
Brent crude futures breached $97 a barrel, and was trading up $2.55 to $96.51 a barrel. US West Texas Intermediate crude futures (WTI) climbed $3.16 to $93.54. Both benchmarks touched their highest in intraday trading for this year, according to news agency Reuters.
Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a October 19 expiry, were last trading 3.49 per cent higher at ₹7,801 per bbl, having swung between ₹7,568 and ₹7,822 per bbl during the session so far, against a previous close of ₹7,543 per barrel.
US crude stocks fell by 2.2 million barrels last week to 416.3 million barrels, according to US government data. Crude stocks at the key Cushing, Oklahoma, storage hub and the delivery point for US crude futures, fell by 943,000 barrels in the week to just under 22 million barrels, the lowest since July 2022, according to Reuters.
Stockpiles at Cushing have been falling closer to historic low levels due to strong refining and export demand, prompting concerns about the quality of the remaining oil at the hub and the potential to fall below minimum operating levels.
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Updated: 27 Sep 2023, 10:13 PM IST
