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Crude Oil Rallies After Supply Data Shows Big Drawdown from

October 17, 2017 at 21:16 by Vladimir Vyun

Crude oil rallied on reports of a big drawdown from US inventories. The American Petroleum Institute reported that US stockpiles of crude shrank by as much as 7.1 million barrels last week. At the same time, gasoline reserves increased by 1.9 million barrels.

Now, traders wait for Wednesday’s official supply data from the Energy Information Administration. Experts estimated ahead of the report that it should demonstrate a drop of 4.7 million barrels last week after the decrease by 2.7 million the week before. Draw from US reserves increased after refineries came back online after halting production due to hurricanes.

Yesterday, crude rallied on reports that Iraq military forces clashed with Kurdish fighters for the control of the oil-rich region of Kurdistan. Today, news said that the Kurds retreated, reducing probability of supply disruptions from the main oil-producing area of Iraq, the second-biggest producer in the Organization of Petroleum Exporting Countries.

November futures for delivery of WTI crude oil advanced 0.13% to $51.94 per barrel as of 21:12 GMT on NYMEX today. December contract for Brent crude edged up 0.5% to $58.11 per barrel on ICE.

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