Despite continuing macroeconomic uncertainty, crude oil achieved a rise of 0.43%, ending the day at $72.58. Investors were more interested in the tightening supply conditions. The voluntary supply cuts by Saudi Arabia and Russia were increased by a total of 1.3 million barrels per day until the end of the year, which improved market sentiment.
Though concerns about demand still exist, they are mostly brought on by China’s economic downturn and worries that the Federal Reserve may raise interest rates more, which might have an impact on how much energy is consumed. The United States provided encouraging news, as crude oil stockpiles fell for the fourth week in a row and over 6% over the previous month.
To supply the demand for energy around the world, high refinery utilization rates were the main cause of this reduction. Crude inventories decreased significantly, by 6.3 million barrels, according to the Energy Information Administration, more than twice as much as was predicted—a decrease of 2.1 million barrels.
At 416.6 million barrels, the current level of crude stockpiles represents a 6.5% decline since the start of August. A notable reduction of 1.8 million barrels in oil stock was also observed in Cushing, Oklahoma. Overcoming predictions, the U.S.’s petrol stockpiles decreased by 2.7 million barrels throughout the week.
