Oil Holds Gains in Wake of Falling U.S. Crude Inventories

(Bloomberg) -- Oil edged higher after a U.S. government report showed declining crude and fuel stockpiles in the wake of Hurricane Ida shuttering most of the Gulf of Mexico’s production. 

Futures recovered after earlier sliding as much as 2.1% in New York on Thursday. Domestic crude stockpiles fell for a fifth straight week and gasoline inventories tumbled to the lowest since 2019, according to Energy Information Administration data.

Prices were under pressure earlier in the session after China, the world’s largest oil importer, said it released oil from its strategic reserves in an effort to alleviate pressure from rising raw material prices. 

West Texas Intermediate for October delivery added 32 cents to $69.62 a barrel at 11:03 a.m. on the New York Mercantile Exchange. Brent for November settlement rose 28 cents to $72.88 a barrel on the ICE Futures Europe exchange.

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