Oil extends bull market as US supply drops amid rising demand

September 30, 2017

Oil rose in a bull market after data showed a surprise decline in US crude stockpiles, taking Opec and its allies closer to a goal of reducing a global glut.

Futures added as much as 1.4 per cent in New York after rising 0.5 per cent Wednesday. Crude inventories fell by 1.85 million barrels last week after analysts surveyed by Bloomberg forecast an increase. US exports jumped 61 per cent to 1.49 million barrels a day, the Energy Information Administration reported. In Libya, production neared the 1 million-barrel-a-day mark as disruptions eased.

West Texas Intermediate for November delivery was at $52.73 a barrel on the New York Mercantile Exchange, up 59 cents, at 10:49am. London time. Total volume traded was about 28 per cent above the 100-day average. Prices increased 26 cents to $52.14 on Wednesday.

Brent for November settlement gained 50 cents to $58.40 a barrel on the London-based ICE Futures Europe exchange, after losing 54 cents on Wednesday. The global benchmark crude traded at a premium of $5.67 to WTI. The spread rose to the widest since June 2015 earlier this week.