By Yasin Ebrahim and Liz Moyer
Investing.com - U.S. oil stockpiles declined for a fifth-straight week as American producers braced for the onslaught of Hurricane Laura.
U.S. crude inventories fell by 4.5 million barrels last week, according to an estimate released Tuesday by the American Petroleum Institute, after a draw of 4.3 million barrels the previous week.
The weekly draw has surpassed expectations since late July as traders gauge demand as a sign that businesses are returning to health after Covid-related shutdowns.
West Texas Intermediate, the U.S. benchmark for oil, was up 1.8% after settling 1.6% higher at $43.31 a barrel on Tuesday. Oil prices were supported by expectations for lower crude production as drillers and refiners along the U.S. Gulf Coast shut-in operations in advance of a one-two punch of storms.
Tropical Storm Marco petered out after making landfall on Monday near the mouth of the Mississippi River. But right behind him, Laura strengthened to a category 1 hurricane and is expected to gain even more power before making landfall on the Louisiana to Texas coastline in the next day or so.