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WTI oil futures rise on bets for U.S. supply drop

Published 10/09/2015, 14:38
Updated 10/09/2015, 14:41
© Reuters.  U.S. crude oil futures push higher ahead of weekly supply data
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Investing.com - West Texas Intermediate oil futures rose on Thursday, amid speculation weekly supply data due later in the session will show U.S. crude inventories fell at a faster pace than expected last week.

Crude oil for delivery in October on the New York Mercantile Exchange tacked on 49 cents, or 1.11%, to trade at $44.64 a barrel during U.S. morning hours.

The U.S. Energy Information Administration was to release its weekly report on oil supplies at 11:00AM ET later Thursday. The data was expected to show that crude stockpiles rose by 1.0 million barrels last week, while gasoline stockpiles were forecast to decline by 0.6 million barrels.

The report comes out one day later than usual due to Monday's Labor Day holiday in the U.S.

After markets closed Wednesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by 2.1 million barrels in the week ended September 4, compared to expectations for a gain of 0.3 million.

New York-traded oil slumped to a daily low of $43.36 earlier Thursday, the weakest level since September 2. A day earlier, Nymex oil prices plunged $1.79, or 3.9%, as appetite for riskier assets weakened amid worries over sluggish global growth.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery inched up 23 cents, or 0.49%, to trade at $47.81 a barrel, bouncing back after falling to a daily low of $46.76, a level not seen since August 28.

On Wednesday, Brent futures lost $1.94, or 3.92%, as ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated.

Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the OPEC last year not to cut production.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.17 a barrel, compared to $3.43 by close of trade on Wednesday.

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