• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 12 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 7 days America should go after China but it should be done in a wise way.
  • 14 hours Even Shell Agrees with Climate Change!
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 3 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 2 days World could get rid of Putin and Russia but nobody is bold enough
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

Oil Prices Rise as U.S. Stocks Decline and Red Sea Tensions Increase

Oil prices rose by more than 1% early on Thursday, buoyed by a larger-than-expected U.S. crude draw, Chinese stimulus, and continued attacks by the Houthis in and near the Red Sea.

As of 10:50 a.m. ET on Thursday, the U.S. benchmark, WTI Crude, had risen by 1.53% to $76.00. The international benchmark, Brent Crude, was up by 1.36% at $80.95.  

Oil prices were supported early on Thursday by the Energy Information Administration’s inventory report from Wednesday, which showed a crude draw of 9.2 million barrels for the week to January 19.

“The withdrawals are significantly higher than the 6.7MMbbls of withdrawal that API reported or the market expectations of around 0.9MMbbls/d of withdrawal,” ING strategists Warren Patterson and Ewa Manthey wrote in a note on Thursday.  

“Crude oil imports into the country dropped by around 1.8MMbbls/d over the week, which helped to tighten the supplies,” they said.

Analysts at Saxo Bank warned that “the EIA report could have been distorted by the recent cold ‘bomb’ in the US temporarily cut production of oil and gas due to freeze-offs – when low temperatures freeze wells and other equipment, while temporarily driving a spike in demand for fuels, especially diesel and heating oil.”

The two other bullish factors pushing oil prices higher on Thursday were the latest Chinese stimulus unveiled on Wednesday and the incessant Houthi attacks in the Gulf of Aden in the Middle East.

The Iran-backed Houthi militants in Yemen claimed on Thursday they hit a U.S. warship in the Gulf of Aden and the Bab el-Mandeb Strait, while the U.S. said the Houthis targeted – again – a U.S. commercial shipping vessel-the U.S.-flagged, owned, and operated container ship M/V Maersk Detroit, which was transiting the Gulf of Aden.

ADVERTISEMENT

China on Wednesday said it would cut the bank reserve ratio—a move aimed at injecting cash into the banking system to boost growth, and consequently—oil demand. 

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News