Oil holds gain as big U.S. inventory draw points to tighter market
BNN Bloomberg
Oil held gains after a five-day advance driven by a slump in U.S. inventories and speculation that OPEC+ leaders will prolong supply cuts.
West Texas Intermediate traded near US$82 a barrel, after advancing 3.5 per cent in the longest run of daily gains since March. Stockpiles in the US fell by 10.6 million barrels last week, cutting them to the lowest since December. Inventories at the key Cushing, Oklahoma, hub also declined to the least since January.
With a small gain Thursday, crude is on track for its longest run of increases since January. That stretch comes as key OPEC+ producers curtail production, and are expected to roll those cuts into October. Despite the increases, market moves have been subdued in recent days, with volatility falling to the lowest since early 2020.
