Oil prices climb on news of declining US inventories

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Oil prices climb on news of declining US inventories
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America’s stockpiles said to have fallen by 5.4-million barrels last week, more than expected, as Hurricane Ida shut output

The Engen oil refinery in Durban. File photo: REUTERS/ROGAN WARD

Brent oil rose 60c, or 0.8%, to $74.20 a barrel by 8.58am GMT, while US West Texas Intermediate crude climbed 65c, or 0.9%, to $71.11. Crude stocks fell by 5.4-million barrels for the week ending September 10, compared with a forecast drop of 3.5-million barrels.“The impact of Hurricane Ida was a lot greater than many anticipated and production in the Gulf of Mexico region might struggle to return until Tropical Storm Nicholas is done punishing the region with torrential rain,” said Edward Moya, senior analyst at Oanda.

Damage from the storm comes two weeks after Hurricane Ida knocked a significant amount of Gulf Coast refining capacity offline.

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