Oil prices pulled back on profit-taking on Friday after settling more than 4% higher a day earlier after government data confirmed a surprisingly large drawdown in U.S. crude inventories.
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Brent crude oil rose 78 cents to US$48.76 a barrel, a 1.6 per cent gain, by 9:27 a.m. EDT (1327 GMT).
The rally came after US Department of Energy data showed a 14.5 million barrel drop in US commercial inventories for the week ending Sep 2, the biggest weekly slump in US crude stockpiles for 17 years.
NYMEX crude for October delivery was down 40 cents at $47.22 after settling up $2.12, or 4.7 percent, on Thursday.
Blame tropical storm Hermine for the sharp decline in imports in the Gulf Coast.
But Tropical Storm Hermine, which threatened the Gulf Coast refining region, led to the loss of some US oil production and limited imports.
“The market missed the imports but I think the price increase is temporary as opposed to a new uptrend”, said Dominick Chirichella, senior partner at Energy Management Institute in NY.
Key U.S. oil spreads remained little changed after the EIA report. Gasoline margins also rose sharply.
Russian average oil production was close to 11 million barrels per day (bpd) in the period of September 1-7, two industry sources told Reuters on Thursday.
TOKYO – Oil prices pulled back on profit-taking on Friday after settling more than 4% higher a day earlier after government data confirmed a surprisingly large drawdown in United States crude inventories.
On Monday, crude prices jumped after both major producers agreed to cooperate on stabilizing the oil market.
However, the oil options market indicates traders are not betting big on Opec and rival Russian Federation clinching a meaningful deal this month to control output. An April meeting in Doha, Qatar, failed to reach an agreement.
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Both main contracts soared more than two dollars Thursday after the energy department said United States inventories dropped 14.5 million barrels, the sharpest rate in 17 years.
