On Thursday, crude oil prices rose after the US government data reported weaker crude inventories, but Chinese economic issues limited gains.
West Texas Intermediate crude oil futures for October delivery jumped by 0.04% to $81.66 per barrel on August 31. Likewise, Brent oil contracts for November exports went up by 0.05% to $85.28 a barrel.
Recently, both benchmarks gained over a dollar as the US currency lowered. This came after easing job data reduced the chances of more interest rate hikes.
On Wednesday, the Energy Information Administration (EIA)’s data showed US inventories dropped to 422.9 million barrels last week. According to analysts, they anticipated a 3.3-million-barrel decline.
Other experts expect the world’s top oil explorer, Saudi Arabia, to extend its voluntary volume cut. They aim to maintain their supply tightness.
Additionally, they estimated Saudi Arabia’s official selling costs for crude sold to Asia would rise to its highest this year.
On the other hand, the fuel’s gains were limited amid pressures over the unstable economic conditions in China. Besides, the Asian nation is the biggest imported of the commodity globally.
Moreover, Chinese refiners are set to increase diesel deliveries in September to over one million metric tons. Analysts said it was led by profitable margins from overseas sales while expecting higher export quotas from Beijing.
Gabon Coup Drives Oil Price Spikes
On Wednesday, a military coup in Gabon, a member of OPEC, slightly pulled up oil prices as they created supply concerns.
According to the Wall Street Journal, Gabon’s coup announcement increased global crude prices. It was mainly caused by threats pointed to its country’s exports.
The Central African nation produces 190,000 barrels of oil daily. So far, no coup-related disruptions have been reported to Gabon’s fuel production.
Moreover, the commodity’s price continuously rose for the fifth straight session. On the other hand, crude in America dropped by 11.5 million barrels last week.
Furthermore, the American Petroleum Institute (API) reported its speculated crude storage to slide lower than the 2.9-million-barrel fall.
