Oil rises 2% with Brent futures hitting a two-week high

Oil Prices Gain on Falling U.S. Inventories

Oil hit a two-week high above $74 a barrel on Wednesday as an industry report showing a sharp drop in USA crude inventories and USA sanctions on OPEC producer Iran pointed to tighter supplies.

The EIA also said US oil production C-OUT-T-EIA was rising, reaching 11 million barrels per day last week.

Still, he said, prices drew support from the bigger-than-expected draw in USA crude inventories reported on Wednesday by the Energy Information Administration (EIA).

Meanwhile, Brent crude, which is the worldwide benchmark of crude oil, rose by $1.48 to $74.11 a barrel.

The October contract added US$2.02 to settle at US$67.86 yesterday, the highest closing price for the front-month futures since Aug 7.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $68.24 per barrel, up 41 cents, or 0.6 percent.

Concerns also remain over how much oil will be removed from global markets by renewed sanctions on Iran, despite worries that demand-growth could weaken amid a trade dispute between the United States and China, the world's two biggest economies.

Mollie Tibbetts' ex-classmate gave birth to murder suspect's baby
Kim Reynolds said residents "are angry that a broken immigration system allowed a predator like this to live in our community". Immigration and Customs Enforcement did not respond on Wednesday to questions regarding Rivera's immigration status.

Washington is holding hearings this week on a proposed list of another $200 billion worth of Chinese imports to face duties, to which China is nearly certain to respond.

The trade war is "expected to shave up to 0.3-0.5 percentage points from China's real GDP growth in 2019", said Moody's Investor Service, adding it should cut 0.25 percentage point from projected US real GDP growth "to 2.3 percent in 2019".

The U.S. dollar index against a basket of six major currencies eased on Wednesday to 95.211 after losing 0.7 percent the previous day, weighed down by U.S. President Trump's comments on monetary policy. United States light crude was 10 cents lower at US$67.76.

Investors are also closely monitoring OPEC as well as U.S. supplies before the United States sanctions on Iran's oil exports kick in this November.

Data released Wednesday by the U.S. Energy Information Administration revealed crude inventories declined by 5.8 million barrels in the last week, compared with analysts' expectations for an decrease of 1.5 million barrels.

Iran is the third-biggest producer within the Organization of the Petroleum Exporting Countries (OPEC), exporting on average around 2.5 million barrels per day (bpd) of crude and condensate this year, equivalent to around 2.5 percent of global consumption.

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