Oil prices up after 9th weekly USA crude drawdown

Oil rose for a second day in NY, extending its gain from a two-month low, after USA crude stockpiles declined for a record ninth week and refining activity climbed to a 2016 high.

U.S. West Texas Intermediate crude for September delivery, the new front month contract from Thursday, was up 18 cents at $45.93 a barrel at 0042 GMT.

Oil futures edged lower in electronic trading Tuesday, holding ground at a 10-week low, after the American Petroleum Institute reported that USA crude supplies fell by 2.3 million barrels for the week ended July 15, according to sources.

USA crude rose earlier after industry group the American Petroleum Institute reported crude stockpiles fell by 2.3 million barrels last week.

U.S. gasoline stocks rose 911,000 barrels last week, against a forecast for unchanged, and were well above the upper limit of the average range, the EIA said. Analysts polled by S&P Global Platts forecast a decline of 1.25 million barrels for crude inventories.

Brent for September settlement gained 14 cents to $47.31 a barrel on the London-based ICE Futures Europe exchange.

Investing.com offers an extensive set of professional tools for the financial markets. In addition, the report showed a raise of 800,000 barres in gasoline stocks, and distillate inventories also decreased by 500,000 barrels.

USA gasoline supplies increased again last week.

Oil prices retreated Thursday in volatile deals after recent gains made on sliding crude inventories in top global consumer the United States.

Given the rising gasoline stocks, however, the overall picture is still considered bearish. There is also a glut of gasoline and many other fuels today, though oil prices have been plummeting in the last couple of years. “We need more clarity on where the oil market is heading”, said Carsten Fritsch, commodities analyst at Commerzbank.

At the time of writing, Brent crude traded at US$46.20 a barrel, down 1 percent, and WTI was changing hands at US$43.97, down 1.52 percent. WTI crude settled at $44.65 on Tuesday.

The U.S. government’s Energy Information Administration (EIA) will issue inventory data later on Wednesday.

The market’s attention has lately been on an unexpected oversupply in fuels during the USA peak summer driving season.

The US dollar rose to 1.0999 per euro.