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Oil Prices Increase on Unexpected U.S. Crude Drop

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Oil prices increased Wednesday after surprise drawdowns in U.S. crude and fuel stocks, outweighing the U.S. dollar’s strength.

Brent futures rose 3.5% to $89.32, while U.S. WTI futures rose 4.65% to $82.15 per barrel.

U.S. crude stocks dropped 215,000 barrels last week, while gasoline and distillate inventories decreased 2.4 million and 2.9 million barrels respectively due to outages.

Due to a decrease in refining activity as a result of multiple outages, U.S. crude stock dropped by 215,000 barrels in its most recent week, while gasoline and distillate stocks fell by 2.4 million and 2.9 million barrels, respectively.  

US government data shows that Hurricane Ian shut down roughly 190,000 bpd (11% of the Gulf’s total) of oil production in the Gulf of Mexico.  The shutdown of refineries in the Midwest and the West Coast has caused a rise in wholesale gasoline prices across the United States.

A source familiar with Russian views said on Tuesday that Russia is expected to propose an output cut of roughly 1 million barrels per day at the OPEC+ meeting on October 5.

Original source material for this article taken from here

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