Washington: Oil prices rose yesterday, reversing previous losses, on expectations that high natural gas prices as winter approaches may drive a switch to oil to meet heating demand needs.
Brent crude futures gained 28 cents, or 0.3 percent, to $83.46 a barrel after falling 0.3 percent on Wednesday.
US West Texas Intermediate (WTI) crude futures climbed 22 cents, or 0.3 percent, to $80.66 a barrel, after dropping 0.3 percent the previous day.
Prices were also supported by concerns about supply tightness after the US Energy Information Administration (EIA) said on Wednesday that crude oil output in the United States, the world’s biggest producer, is going to decline in 2021 more than previously forecast thought it will bounce back in 2022.
The American Petroleum Institute (API) said late on Wednesday that US crude stockpiles rose by 5.2 million barrels for the week ended October 8, according to market sources who saw the API data.
The API also reported gasoline inventories fell by 4.6 million barrels and distillate stocks fell by 2.7 million barrels, the sources said.
Analysts in a Reuters poll expected crude inventories to rise by 700,000 barrels.
