From Gina Lee
Investing.com – Oil was on the up in Asia on Wednesday morning after the American Petroleum Institute (API) saw a massive decline in US crude oil inventories, but hurricane disruptions in Gulf of Mexico production ended black liquid's year-over-year gains.
rose 1.55% to $ 41.16 by 11:57 p.m. ET (4:57 p.m. GMT) and passed the $ 40 mark. jumped 1.83% to $ 38.98. Both benchmarks rose more than 2% in the last session.
API had a draw of 9.517 million barrels in the week ended September 11, while the previous week it was forecasted construction of 2.04 million barrels and 2.270 million barrels.
The US Energy Information Administration (EIA) will release its own data later in the day.
Hurricane Sally was on its way to US golf cost but is not expected to land until later in the day. More than 25% of US offshore oil and gas production ceased Tuesday, the second disruption since Hurricane Laura in late August. Export ports have also been closed.
"Our current estimate for the total failure associated with the Sally weather system is between 3 and 6 million barrels of oil in approximately 11 days," Rystad Energy said in a note.
The downtime could alleviate oversupply worries by reducing inventory levels. However, the storm also forced the refineries to close, reducing oil demand.
Investor hopes for a recovery in fuel demand remain weak and the global economy is struggling to recover from the effects of COVID-19. According to the Johns Hopkins University, the pandemic continues to rage worldwide on September 16, with nearly 29.5 million cases.
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