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Oil prices settle slightly higher on unexpected draw in US crude inventories

Published 10/16/2024, 09:40 PM
Updated 10/17/2024, 02:30 PM
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Investing.com -- Oil prices settled slightly higher on Thursday following data showing U.S. weekly crude stockpiles unexpectedly fell last week, pointing to renewed demand following weather-related disruptions.

At 2:30 p.m. ET (1830 GMT), West Texas Intermediate crude futures were 0.4% higher at $70.67 per barrel and Brent oil futures gained 0.3% to $74.44 a barrel.  

Inventories of U.S. crude fell by roughly 2.2M barrels in the week ended Oct. 11 25, confounding expectations for a build of about 1.8M barrels. 

Gasoline inventories, one of the products that crude is refined into, fell by roughly 2.2M barrels, compared with expectations of a draw of 1.4M barrels while distillate stockpiles declined by 3.5M barrels, compared with expectations for a decline of 2.5M barrels.

Beyond the US,  a briefing on Thursday from the China's housing ministry on plans to aid China's sputtering real estate market failed to cool fears about cooling growth in the world's second largest economy 

Elsewhere, the European Central Bank slashed interest rates at a second consecutive meeting, noting that the inflation outlook is increasingly under control and economic indicators are weakening. The reduction could give some support to oil prices as cheaper borrowing costs can theoretically boost demand.

(Scott Kanowsky, Ambar Warrick contributed reporting.)

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