US oil rises 1.7% on a significant drop in inventories and concerns about Hurricane Durian

BAGHDAD, US oil contracts rose 1.7 percent on Thursday night, supported by a sharp decline in crude inventories in the United States, especially at the delivery center in Cushing, due to an increase in demand with the start of two pipelines in West Texas.

Hurricane Durian’s turn toward Florida also raised concerns that US crude producers in offshore fields could slow production if the storm passed in the Gulf of Mexico early next week.

Brent crude, meanwhile, rose above $ 61 as concerns about economic growth eased.

U.S. West Texas Intermediate (WTI) crude futures rose 93 cents, or 1.7 percent, to settle at $ 56.71 a barrel.

Brent crude rose 59 cents, or 0.98 percent, to settle at $ 61.08 a barrel.

The National Hurricane Center said Durian was expected to strengthen and become a serious typhoon on Monday.

Last month, Hurricane Barry pushed offshore oil companies to cut up to 74 percent of production, raising US crude prices, before weakening into a tropical storm in Louisiana.

US crude stocks fell last week by 10 million barrels to their lowest level since October as imports slowed, while gasoline and distillate inventories fell by more than 2 million barrels, government data showed on Wednesday.

Stocks at the WTI crude delivery center in Cushing, Oklahoma fell last week by about 2 million barrels to the lowest level since December.

The gains are constrained by fears of slowing economic growth due to the US-China trade war, which is raging among the world’s top oil consumers, as well as potential damage to oil demand.

Source: National Iraqi News Agency