Prices for the West Texas Intermediate crude was seen in green on Wednesday, driven by the upbeat data of the US stockpiles data that are expected to drop in more than a year. Traders are looking forward to the conclusion of the US Federal Reserve two-day meeting, later today, as analysts are expecting the scaling-back of the US stimulus program to hurt the crude prices.
WTI October deliveries rose 0.73% higher at $106.21 a barrel at the time of writing on New York’s Nymex, while the European benchmark crude Brent fell 0.16% lower to $108.02 a barrel after dropping to its lowest in over a month in the previous session.
WTI Crude hit its third monthly advance in August, assisted by the global supply worries from the oil-rich Middle East region. Syria was on the edge of a military intervention from the US, threatening the oil-rich Middle Eastern region.
Crude Prices- Eased Tension
The United Nations Security Council started its official talks on Tuesday to discuss about destroying Syria’s chemical weapons. The recent calming news has eased the heated oil markets, putting an end to the US plans for a military intervention against Syria.
The oil-rich country Libya, a member of the Organization of Petroleum Exporting Countries (OPEC) and one of the largest oil reserves in Africa, resumed at its Zawiya and Mellitah terminals on Tuesday. Production picked up from El Feel and Sharara, adding an additional 400,000 barrels a day (bpd), the state’s National Oil Company announced.
Crude Prices – Stockpile estimates
The US crude stockpiles dropped by 252,000 barrels last week, according to the non-public data compiled by the American Petroleum Institute (API).
Supplies in the largest oil-storage hub in Oklahoma, dropped by 889,000 barrels, according to reports from the American Petroleum Institute (API).
The US stockpiles is expected to have contracted another 1 million barrels over the last week to 359 million barrels.
Gasoline stockpiles are predicted to show a 500,000-barrel rise last week, while the distillate inventories is expected to show a fall of 167,000 barrels, according to analysts.
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