Oil prices rose on Friday, reversing part of Thursday’s losses on expectations that tightness in global oil markets will likely continue.
Benchmark Brent crude futures rose 42 cents, or half a percent, to 85.03 dollar a barrel, while US West Texas Intermediate (WTI) crude futures were up 34 cents, or 0.4 percent, at 82.84 dollars.
While weaker natural gas and coal prices took away some of the support for the oil market, the tightness in the oil market persists amid lower inventories.
A supply report from the US Energy Information Administration (EIA) showed crude and fuel inventories tightened, with crude inventories at the Cushing storage hub falling to 31.2 million barrels, their lowest level since October 2018, despite refinery crude runs having fallen in the week to October 15.
A Bloomberg analysis explains that stockpiles at the Cushing, Oklahoma, crude oil storage hub – the biggest in the US – are quickly approaching critically low levels, which could push crude prices above current multiyear highs.
Source: GNA