Oil Prices Rise On Falling U.S. Stockpiles, North Korea Saber-Rattling

by Ike Obudulu Last updated on August 26th, 2017,

NEW YORK, USA, 10th Aug 2017. Oil prices rose on thursday after report showed U.S. crude inventories fell more than expected. But the market settled into a range amid quiet trading as saber-rattling between the U.S. and North Korea intensified, as well as concerns that global supplies aren’t falling as much as hoped. Oil faced some pressure from broader selling in risk assets as the U.S. and North Korea ratcheted up tensions, weighing on assets like stock and boosting gold prices.

U.S. crude oil inventories fell by 6.5 million barrels to 1.15 billion barrels while gasoline inventories rose 3.4 million barrels to 231.1 million barrels in the week ended Aug. 4, the Energy Information Administration said.

But the EIA has also noted that the increase in active oil rigs last month was the least since the government started its own count in June 2016. Furthermore, some U.S. exploration and production companies recently announced less investment spending for the rest of 2017, “suggesting the current rate of U.S. oil production growth could slow,” the agency added.

The West Texas Intermediate for September Delivery added 0.39 U.S. dollar to settle at 49.56 dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery gained 0.56 dollar to close at 52.70 dollars a barrel on the London ICE Futures Exchange

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On the New York Mercantile Exchange, light, sweet crude futures for delivery in September CLU7, +0.36% rose 39 cents, or 0.8%, to settle at $49.56 a barrel. October Brent crude LCOV7, +0.59% gained 56 cents, or 1.1%, to settle at $52.70.

Nymex reformulated gasoline blendstock RBU7, +0.45% —the benchmark gasoline contract—fell less than 0.1% to settle at $1.620 a gallon. Natural gas for September delivery NGU17, +0.35% rose 6.1 cents, or 2.2%, to settle at $2.883 per million British thermal units.

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