Oil rises as US stockpiles decline, Brent above $94

Oil drilling rigs

Oil closed higher today, Sept. 27, as US inventories declined and the Chinese Central Bank confirmed that it would increase adjustments and implement monetary policy in a "precise and forceful" manner to support an economy whose recovery was improving with increasing momentum.

Data from the National Bureau of Statistics showed an increase in the profits of industrial companies in China during August by 17.2% on an annual basis, recording the first monthly rise since the second half of last year.

Meanwhile in the US, data showed a decline in oil inventories by 2.2 million barrels over the past week, as inventories in Cushing fell below 22 million barrels, near the operating minimum, the lowest level since July 2022.

Analysts at UBS Bank ruled out a decline in Asian demand for oil even if prices rose to $100 a barrel, as China and India still meet a large part of their needs through cheaper Russian supplies, Nikkei newspaper reported.

Separately, the North Sea Transition Authority approved development of the Rosebank field, allowing owners Equinor and Ithaca Energy to move forward with the project, BBC reported.

Brent crude futures for December delivery (the most active) rose by 2.1%, or $1.93, to close $94.36 per barrel. Futures contracts for November delivery rose by 2.75% to $96.55 per barrel.

WTI crude for November delivery rose by 3.65%, or $3.29, to record $93.68 per barrel.