Oil rose in a thinly traded summer session, settling above $81 a barrel as the market took a substantial drop in US crude inventories in stride.
US inventories fell 10.6 million barrels last week to the lowest level since December, according to a report from the Energy Information Administration. However, crude oil’s reaction to the report was muted and prices even dipped temporarily lower, as the reduction was in line with several industry reports.
“The reaction reflects some lethargy as the summer winds down and concerns about additional supply later in the year,” said Rebecca Babin, senior energy trader at CIBC Private Wealth.
Meanwhile, in Africa, soldiers seized power in OPEC member Gabon. Army officials appeared on state television to announce that they had canceled Saturday’s election and dissolved the country’s institutions. There were no reports of disruptions to crude oil production or exports.
After a sharp rise in July, crude oil prices have stabilized in August, staying around $80 a barrel. Trading volumes were below average levels on Wednesday and market volatility for US crude futures is the lowest since 2020, highlighting the lack of major moves of late.
Prices:
- WTI for October delivery rose 47 cents to settle at $81.63 a barrel in New York.
- Brent for October settlement added 37 cents to settle at $85.86 a barrel.
