Oil prices saw an increase after an industry group reported that US stockpiles fell far more than expected, easing concerns on oversupply amid worldwide trade tensions.
The prices were also supported by big oil companies’ evacuation of rigs in the Gulf of Mexico in advance of a brewing storm. Brent crude futures increased $1.14 at $65.30, while US West Texas Intermediate (WTI) crude futures climbed $1.13 to $58.96, Reuters reported.
Data from the American Petroleum Institute (API) revealed the US crude inventories declined by 8.1 million barrels in the week to July 5 to 461.4 million, compared with analyst expectations for a drop of 3.1 million barrels. The US Government’s Energy Information Administration (EIA) is due to reveal official figures.
Major oil producers in the US started evacuation and shut down in production in the Gulf of Mexico following weather forecasts indication that a tropical disturbance might become a storm.
Royal Dutch Shell, BP, Chevron, and BHP Group are eliminating staff from 15 offshore energy platforms. US-based multinational oil and gas firm Exxon Mobil said it was closely monitoring the disturbance to identify if its plants might get affected.
It is reported that 17% of US crude oil output comes from the Gulf of Mexico, standing at around 12 million barrels per day. Reuters reported that the curb in output by Organization of the Petroleum Exporting Countries and big producers to bolster prices has allowed US and global benchmarks to gain in 2018.