NEW YORK, Sept 28 - Oil costs rose on Wed following sudden drawdowns in U.S. crude and fuel stocks, outweighing downward pressure from the continuing strength of the U.S. dollar.
Brent crude futures were up $1.69, or 2%, at $87.96 per barrel by 10:41 a.m. est (1441 GMT), whereas U.S. West Texas Intermediate (WTI) crude futures rose $2.14, or 2.7%, to $80.64 a barrel.
U.S. crude stocks fell by 215,000 barrels in the most up-to-date week, while gasoline and distillation inventories declined by 2.4 million and 2.9 million barrels respectively, as purification activity declined following many outages.
In the Gulf of Mexico, concerning 190,000 barrels per day of oil production, or 11% of the Gulf's total, was shut in because of cyclone Ian, consistent with U.S. government figures. Wholesale gasoline costs are on the increase within us as well after refiners in the midwest and west coast shut down.
world equities accomplished biennial lows on Wednesday, after the Bank of England aforementioned it'd step into the bond market to stem a harmful rise in borrowing costs, thereby wetting capitalist fears of contagion across the financial system.
The dollar hit a recent two-decade peak against a basket of currencies on Wed as rising world interest rates fed recession concerns. a robust dollar reduces demand for oil by making it costlier for buyers using other currencies.
Producer group OPEC+ meets on Oct. 5, where Russia is probably going to propose an output cut of around 1 million barrels per day, a supply familiar with Russian thinking aforementioned on Tuesday.
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