U.S. Crude Oil Futures Gain Amid Stockpiles Decline

U.S. crude oil futures edged higher Thursday, benefiting from a larger-than-expected decline in weekly U.S. domestic crude stocks and a potential delay in additional market supply.

At 07:55 ET (11:55 GMT), Crude Oil WTI Futures traded 0.4% higher at $69.48 a barrel, while Brent futures gained 0.6% to $73.12 a barrel.

API Details Large Stockpiles Draw

U.S. crude inventories decreased by about 7.4 million barrels for the week ended Aug. 30, according to the American Petroleum Institute (API) data released Wednesday. This contrasts with a decline of 3.4 million barrels the previous week. Economists expected only a decline of 900,000 barrels.

Gasoline stockpiles fell by about 300,000 barrels, while distillate inventories, which include diesel and heating oil, dropped by 400,000 barrels. The official government inventory report is expected later in the session.

OPEC Future Plans in Spotlight

Also contributing to the positive tone were reports that the Organization of Petroleum Exporting Countries and allies (OPEC+) might consider delaying oil output hikes planned for next month.

Eight OPEC+ members are set to boost output by 180,000 barrels per day in October as part of a plan to unwind recent supply cuts of 2.2 million barrels per day.

Analysts at ING noted, “If these reports turn out to be correct, the next key question is how long the group will delay their supply increases. The oil balance is in surplus through 2025, assuming OPEC+ increases supply, so continuing cuts into 2025 might make sense.”

Uncertainty Over the Global Economy

However, gains remain limited amid concerns about global demand, with several key economies showing signs of stress. An official survey released over the weekend indicated China’s manufacturing activity fell to a six-month low in August, raising doubts about future consumption from this major market.

European economies are also struggling, and attention will be on further U.S. macroeconomic indicators later Thursday, including jobs data, to assess the performance of the world’s largest economy.

*(Yasin Ebrahim contributed to this article.)