Oil up on US stockpiles draw, Mid East tensions

Oil prices rose on Thursday after data from the Energy Information Administration (EIA) showed a large draw in U.S. crude supplies.

Crude Oil WTI Futures for September delivery rose 0.06% to $69.34 per barrel at 1:30AM ET (05:30 GMT), while Brent Oil Futures for September delivery also gained 0.54% to $74.33 for one barrel.   

Inventories of U.S. crude fell by 6.147 million barrels for the week ended July 20, much more than expectations for a draw of 2.600 million barrels, according to data from the EIA.

The massive draw in crude supplies emerged as imports fell by 2.518 million barrels a day (bpd) and exports rose by 1.222 million bpd, the EIA said.

Gasoline inventories – one of the products that crude is refined into – fell by 2.328 million barrels, topping expectations for a draw of 0.713 million barrels.

Meanwhile, reports that Saudi Arabia is temporarily halting all oil shipments through the Red Sea shipping lane of Bab al-Mandeb after an attack on two big oil tankers by Yemen’s Iran-aligned Houthi movement also pushed oil prices higher.

Following the attack, Saudi Energy Minister Khalid al-Falih said in a statement that one of the crude carriers sustained minimal damage.

“Saudi Arabia is temporarily halting all oil shipments through Bab al-Mandeb Strait immediately until the situation becomes clearer and the maritime transit through Bab al-Mandeb is safe,” the minister said.

Elsewhere, the loss of Iran crude has also supported sentiment on oil prices this week after President Donald Trump on Monday warned his Iranian counterpart, Hasan Rouhani, that threats against the U.S. would be met “with consequences few in history have suffered.”