Global crude oil prices climbed more than 1 dollar on Wednesday, extending overnight gains after industry data showed US crude stocks fell more than expected last week in the wake of two hurricanes. Brent crude oil futures surged 1.09 dollar to 75.45 dollars a barrel, after gaining 44 cents yesterday. US crude futures rose 1.18 dollars to 71.67 dollars, after adding a 35 cents yesterday.
The oil market’s focus turned to concerns of tight supply.
US crude stocks fell by 6.1 million barrels for the week ended Sept. 17. Global gas prices are expected to break records this winter as a hot northern hemisphere summer leaves inventories low in key markets.
Supply is expected to stay tight after Royal Dutch Shell, the largest U.S. Gulf of Mexico producer, said damage to its offshore transfer facilities would cut production into early next year.
Further supporting the market, some producers in the OPEC Countries and their allies, together called OPEC, are struggling to increase output up to targeted level.