Oil prices rose today, Wednesday, as caution over a tight supply offset the negative impact of uncertainty about demand and news that the United States will withdraw more crude from its strategic reserves.
Brent crude futures for December delivery rose $2.38, or 2.6 percent, to $92.41 a barrel at settlement.
US West Texas Intermediate crude for November delivery, which expires on Thursday, rose $2.73, or 3.3 percent, to $85.55 a barrel.
In the previous session, the two benchmarks hit their lowest level in two weeks, after US President Joe Biden said he plans to release 15 million barrels of oil from the Strategic Petroleum Reserve.
Biden indicated, in statements today, Wednesday, that the United States plans to buy back oil to fill the reserves if prices drop enough.
US crude stocks fell unexpectedly last week, falling by 1.7 million barrels, weekly government data showed, against expectations for an increase of 1.4 million barrels.
Strategic Petroleum Reserve levels fell 3.6 million barrels to just over 405 million, the lowest level since May 1984.
Prices were also supported by the imminent European Union ban on Russian crude and its products, and production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia, in what is known as the OPEC+ group, by two million barrels per day.
European Union sanctions on Russian crude come into effect in December, and sanctions on oil products will start in February.
Source: Reuters
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