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US oil stockpiles fell by 8.13 million barrels last week spurring a spike in oil prices

US oil stockpiles fell by 8.13 million barrels last week spurring a spike in oil prices

Futures edged higher in NY after climbing 4.5% on Wednesday to close above $60 a barrel for the first time since May.

As of Wednesday morning, almost 32 percent of oil production in the Gulf of Mexico and about 17 percent of natural-gas production were shut in as a precaution, according to the U.S. Bureau of Safety and Environmental Enforcement.

USA output is rising again after a brief drop from record levels, according to the EIA.

Tensions around Iran's nuclear program and recent incidents involving oil tankers in the Gulf have also supported prices.

Iran's alleged attempt to block a British-owned tanker heightened tensions in the Middle East in the wake of attacks on tankers and the downing of USA drone by Iran in June.

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The Organization of the Petroleum Exporting Countries, in its monthly report, forecast global crude demand from its members in 2020 is likely to be 29.27 million barrels per day, down 1.34 million bpd from this year.

"The spoil above US$60 is susceptible to entice some extra non eternal momentum, however if the storm passes in the Gulf of Mexico, lets watch that depart away because the point of hobby returns to search files from worries", mentioned Ole Sloth Hansen, head of commodity approach at Saxo Monetary institution A/S in Copenhagen. "If the economic outlook has deteriorated so much that the Federal Reserve feels the need for stimulus, it's hard to see fundamental justification for higher prices".

New York-traded settled down 23 cents, or 0.4%, at $60.20 per barrel, after shooting earlier to $60.93, its highest since May 23. On Thursday, the markets rallied to their highest levels since May 28 and May 23, respectively, however, the lack of follow-through to the upside led to the formation of a pair of potentially bearish technical closing price reversal tops.

At 08:40 GMT, September WTI crude oil futures are trading $60.77, up $0.50 or +0.83% and September Brent crude oil futures are at $67.19, up $0.87 or +1.01%. During the session, they hit their highest since May 30 at $67.65 a barrel. The global benchmark crude traded at a US$6.47 premium to WTI for the same month.

Gulf of Mexico operators have shut 602,715 barrels a day of oil production ahead of the storm, the Bureau of Safety and Environmental Enforcement said in a notice.

Chevron Corp, Royal Dutch Shell, BP and BHP Group are removing staff from 15 offshore platforms. Crude stocks fell 9.5 million barrels in the week to July 5, the Energy Information Administration (EIA) said, a drop that was more than triple the 3.1 million-barrel draw expected by analysts. That in comparison with the median estimate in a Bloomberg survey for a 2.9 million-barrel decline.

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