NEW YORK—Oil prices settled higher but well off the day’s peaks on Thursday, supported by a drop in US crude oil inventories, strong jobs data and the European Central Bank’s announcement of a bond buying programme. Brent and US crude prices faded ahead of settlement and turned negative in post-settlement trading. US crude stocks fell 7.43 million barrels last week, the Energy Information Administration said in its weekly report.
The drop was not a surprise, with imports and Gulf of Mexico production disrupted last week by Hurricane Isaac, but the drop was more than the forecasted 5.3-million barrel drop. “The drawdown in crude stocks was a one-time event due to Isaac and there was no damage done to the Gulf infrastructure so the inventory report was written off, and then I think the market digested the ECB bond issue and it doesn't seem to be as much of a game changer ...,” said Gene McGillian, analyst at Tradition Energy.
Brent October crude rose 40 cents to settle at US$113.49 a barrel, after reaching $115.15. Brent slumped below US$113 a barrel in choppy post-settlement trading. Brent and US crude prices gained more than nine per cent in August on sensitivity to a maintenance-related drop in North Sea production set for September and ongoing Middle East turmoil helped front-month Brent hit a three-month peak at US$117.03 on August 16.
US October crude edged up 17 cents to settle at $95.53 a barrel, back under the 200-day moving average of US$96.63. It earlier reached US$97.71, a penny below the August 27 intraday high. Crude posted lows for the day under US$95 in post-settlement trading.
