Oil extends gains after unexpected decline in United States stockpiles

В начале недели цены на нефть резко взяли курс в верх

The barrel of West Texas Intermediate gained traction in the post-settlement trade after the weekly data released by the American Petroleum Institute revealed a surprise draw in crude oil inventories in the U.S. As of writing, the WTI was up 0.66% on the day at $72.15.

The West Texas Intermediate for November delivery dropped 2.17 US dollars to settle at 69.75 dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery lost 1.36 dollars to 80.05 dollars a barrel on the London ICE Futures Exchange.

The rise, reported by the US Energy Information Administration was nearly triple what analysts had forecast and further eased prices, which had hit four-year highs of $86.74 earlier this month.

Wayne Gordon, executive director for commodities and FX at UBS Global Wealth Management, told CNBC that the market is moving into unchartered territory because any oil production from Saudi Arabia above 11 million bpd (which is widely viewed as necessary to offset Iranian losses due to the USA sanctions) is "largely untested", even though he believes capacity globally "will start to ramp up next year".

With the world's only sizable spare oil output capacity, Saudi Arabia is expected to export more to offset the loss of Iranian oil supply from the sanctions.

In WTI, wagers on falling prices have increased as US inventories piled up, and concerns about constrained Permian takeaway capacity and the build-up of stocks have prevailed over the past few weeks.

The market has also been supported amid growing USA tensions with top exporter Saudi Arabia over the disappearance of Saudi journalist Jamal Khashoggi.

Trump has urged the Organization of the Petroleum Exporting Countries to raise output to help cover a shortfall due to new USA sanctions on Iran. The new round of US sanctions against Tehran are set to start in November 4.

Saudi government reportedly grappling with Khashoggi explanation to save face
Khashoggi has not been seen since entering the consulate to obtain documents for his forthcoming marriage. Khashoggi, I can not support President Trump's proposed arms sale", Durbin said.

US President Donald Trump in May withdrew from the 2015 nuclear accord with Iran, reimposing economic sanctions against the Persian Gulf nation.

"And then next year, we start the entire merry-go-round again, and I think gas prices and crude oil prices will be very similar to where they've been in the last six weeks", Kloza said.

"The market is reacting to the unexpected decline as inventories tend to rise at this time of year", said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo, adding that anxieties about the outlook for the global economy were capping gains.

The U.S. sanctions against Iran is the cause of turmoil in oil prices in the global market, Tasnim news agency quoted Iranian Petroleum Minister Bijan Namdar Zanganeh as saying on Tuesday.

"That's a negative for oil prices right now, the larger-than-expected build in inventories this week", said Rob Thummel, managing director at Tortoise, which manages $16 billion in energy-related assets.

India imported 5.67 MT oil from Iran during the quarter.

The EIA report on Wednesday showed that crude stockpiles rose 6.49 MMbl last week, while inventories at the Cushing, Okla., complex climbed by 1.78 MMbl.

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