Petroleum costs climbed up higher and remained at near four-year highs on Wednesday, amid reports about a drop in oil exports from Iran ahead of the approaching U.S. sanctions and on expectations of short supply in the market next month.
Oil rates went up in spite of U.S. Energy Information Administration’s information that showed domestic unrefined materials to have risen by about 8 million barrels in the week ended September 28. That was the biggest weekly climb so far in the year.
In the week ended September 21, unrefined stockpiles had increased by 1.9 million barrels, after five consecutive weeks of decreases.
According to EIA, gas stockpiles fell by 500,000 barrels recently, while extract stockpiles decreased by 1.8 million barrels. The agency likewise stated that materials at Cushing, Oklahoma, the essential delivery point for Nymex crude, increased by 1.699 barrels last week.
On Tuesday night, the American Petroleum Institute released a report that revealed U.S. crude oil stocks increased by 907,000 barrels last week.
Petroleum futures for November wound up $1.18, or 1.6%, at $76.41 a barrel on the New York Mercantile Exchange. On Tuesday, crude oil futures ended down $0.07, or 0.09%, at $75.23 a barrel.
With OPEC and some top significant non-OPEC manufacturers consisting of Russia not having much spare capability to increase output any substantially to balance out the supply scarcity due to the restriction on Iranian oil, many experts feel crude oil prices will move even more up north by the end of this year.
U.S. Secretary Mike Pompeo revealed today that the United States is terminating the 1955 Treaty of Amity, its financial contract with Iran.
The material has actually been provided by InstaForex Company – www.instaforex.com