Brent Crude rises by 1%, trades at $75.07 per barrel

Brent crude futures rose by nearly 1% to $75.07 a barrel on Wednesday after trading below $74 the day before, lifted by data showing US crude stocks dropped more than expected.

API figures on Tuesday showed US oil inventories fell by 6.108 million barrels for the week which ended on September 17th, the biggest draw since the week ended on July 2nd, 2021; marking the eighth straight weekly fall.

Meanwhile, US oil producers reportedly were still working to bring back production stalled by Hurricane Ida three weeks ago, as about 16.64% of the US Gulf’s oil and 25.4% of its natural gas production remained offline on Tuesday.

Royal Dutch Shell mentioned on Sunday that full recovery in the Gulf looks unlikely in the near term as damage to its facilities will push the resumption of full capacity to Q1 2022.

Brent Crude oil is a major benchmark price for purchases of oil worldwide. While Brent Crude oil is sourced from the North Sea the oil production coming from Europe, Africa and the Middle East flowing West tends to be priced relative to this oil.

Source: Trading Economics