Oil prices extends gains on tighter US crude, hurricane Idalia concerns; Brent over $85/bbl
Oil prices extended gains on Wednesday, August 30, after US government data showed tighter-than-expected crude supplies in US, while hurricane Idalia kept investors on edge. US crude inventories dropped by 10.6 million barrels in the last week to 422.9 million barrels, Energy Information Administration data showed on Wednesday. Product supplied of finished motor gasoline – a proxy for demand – was at about 9.1 million barrels per day, according to news agency Reuters.
Brent crude futures for October rose 21 cents to $85.70 a barrel EDT.. The October contract expires on Thursday and the more active November contract was at $85.13, up 22 cents. U.S. West Texas Intermediate crude futures rose 30 cents to $81.46. Both benchmarks rallied by more than a dollar on Tuesday as the US currency weakened after soft US jobs data reduced the likelihood of further increases to interest rates.
Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a September 19 expiry, were last trading higher by 0.39 per cent at ₹6,730 per bbl, having swung between ₹6,689 and ₹6,775 per bbl during the session so far, against a previous close of ₹6,704 per barrel.
The US economy expanded at a 2.1 per cent annual pace in the April-June quarter, compared to the initial estimate of 2.4 per cent, according to official revised estimates released on Wednesday. The US government had previously estimated that the economy expanded at a 2.4 per cent annual rate last quarter.
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Updated: 30 Aug 2023, 09:15 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.