Oil prices are somewhat sluggish Friday morning with traders weighing global crude demand and supply situation, and looking to take some profits after recent strong gains.
Still, crude oil looks well on course to record a third straight week of gains with recent data showing a drop in crude inventories, and amid a somewhat slow recovery in output from the Gulf of Mexico region which saw severe disruptions due to the impact of two hurricanes.
West Texas Intermediate Crude oil futures for November are down slightly at $73.29 a barrel, after falling to a low of around 73.10 a barrel earlier.
Brent crude futures are down $0.04 at $77.21 a barrel.
WTI futures had gained 2.5% and 1.5% on Wednesday and Thursday, respectively.
Data from Energy Information Administration (EIA) showed crude stockpiles dropped by 3.481 million barrels to 414 million barrels last week, the lowest level since October 2018.
Gasoline stockpiles rose by 3.47 million barrels last week, while distillate stockpiles dropped by 2.55 million barrels.
The EIA also said that oil facilities in the Gulf of Mexico continue to return to production, and weekly output rose by 500,000 barrels per day in the most recent week.
OPEC and allies, collectively known as OPEC+, will meet on October 4. Iraq’s oil minister said on Wednesday that the group was working to keep crude prices close to $70 per barrel amid a recovery in the global economy.
The material has been provided by InstaForex Company – www.instaforex.com