Oil Futures Up Sharply Amid Signs Of Tighter Supplies

Crude oil prices are rising sharply Friday morning, extending gains from the previous session, amid signs of a drop in crude supply in the U.S. due to the impact of Hurricane Ida.

According to reports, nearly 75% of offshore oil production in the Gulf of Mexico region remains halted for nearly three weeks now.

The latest data from Energy Information Administration showing declines in crude oil, gasoline and distillate stockpiles in the U.S. last week continues to support oil's uptick.

Also, there are expectations of a warmer relationship between the U.S. and China after reports about a call between the presidents of the two countries.

West Texas Intermediate Crude oil futures for October are up $1.27 or 1.85% at $69.41 a barrel.

Brent crude futures are gaining $1.29 or 1.81% at $72.74 a barrel.

Data from Energy Information Administration (EIA) on Thursday showed crude stockpiles in the U.S. declined 1.529 million barrels in the week ended September 3, much less than an expected draw of 4.6 million barrels.

Gasoline inventories dropped by 7.2 million barrels, more than twice the expected drop, while distillate stockpiles were down by 3.142 million barrels in the week, the EIA data showed.

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