Oil Prices Rise On API Data On Lower US Inventories
Global oil prices are rising on Wednesday morning on data from the American Petroleum Institute (API) on a stronger-than-expected decline in US inventories over the past week, according to trading data.
As of 8.14 Moscow time, the price of November futures for Brent North sea oil mix rose by 0.88% to $ 45.98 per barrel, and October futures for WTI — by 0.94% to $ 43.16 per barrel.
As API reported on Wednesday night, commercial oil reserves in the United States for the week to August 28 decreased by 6.4 million barrels. At the same time, experts assume that the indicator fell only by 1.9 million barrels. Official data from the US Department of energy will be published in the evening.
Strong statistics for the US and China also support demand expectations. Business publication Caixin on Tuesday reported that the Purchasing Managers Index (PMI) in China's industry unexpectedly rose in August. China is the world's largest oil importer. At the same time, the index of business activity in the US industry (ISM Manufacturing) in August increased more than expected.
"A larger-than-expected decline in US inventories and growing hopes for a recovery in the US and China after strong industrial statistics supported oil futures," Reuters quoted Hiroyuki Kikukawa, senior research Manager at Nissan Securities, as saying.
The expert also noted that oil production in the United States after hurricane Laura is recovering more slowly than expected.