Oil Rallies to Six-Week High as U.S. Crude Stockpiles Tighten
- Crude inventories dropped by more than 6 million barrels: EIA
- Brent crude tops $75 a barrel first time since early August
Above ground petroleum storage tanks and distillation towers at the Marathon Petroleum Corp. Los Angeles Refinery in Wilmington, California.
Photographer: Bing Guan/BloombergOil jumped to the highest in six weeks amid signs of a rapidly tightening market after a U.S. government report showed a bigger-than-expected decline in crude stockpiles.
Futures in New York surged 3.1% on Wednesday and global benchmark Brent closed above $75 a barrel for the first time since July. U.S. crude supplies hit the lowest since September 2019 after falling by more than 6 million barrels, exceeding projections. The data follow the International Energy Agency’s warning that recent supply lost from storms in the U.S. Gulf have offset what OPEC and its allies have added, and the world will have to wait until October for more barrels.