Oil prices, energy stocks jump as crude inventories post steep drop - Seeking Alpha
Crude oil futures (USO +1.3%) are in the green but off highs of the day, after U.S. government data showed the largest weekly drop in five weeks for domestic crude supplies, helping ease concerns about slowing demand; October WTI +1.8% to $55.91/bbl, Brent +1.8% to $60.57/bbl.
Crude stockpiles fell by 10M barrels, roughly in line with an 11.1M-barrel drop reported by the American Petroleum Institute and well above an expected decline of 4.7M barrels anticipated by analysts polled by S&P Global Platts.
"It was an incredibly bullish report, one of the more bullish we've had in a while, with draws across the board and of course the massive crude oil drop, which was generated by another drop in imports," says Again Capital's John Kilduff, adding the draw down likely was due to a drop in Saudi exports to the U.S.
Natural gas prices (UNG +2.9%) also are higher, +3.1% at $2.27/MMBtu, "likely finding support on anticipation for an injection equal to the five-year average" in Thursday's EIA storage report, says Schneider Electric analyst Christin Redmond.