Oil prices rise on supply picture
By Ahmad Ghaddar
LONDON (Reuters) -Oil prices rose on Thursday, boosted by a large drawdown in U.S. crude inventories and production cuts by OPEC+, and as U.S. data showed slowing inflation in the world's biggest consumer.
Brent crude futures for October, expiring on Thursday, rose 94 cents, or 1.1%, to $86.80 a barrel by 1406 GMT. The more active November contract was up 92 cents, or 1.1%, at $86.16.
U.S. West Texas Intermediate crude futures for October rose $1.24, or 1.5%, to $82.87.
U.S. government data on Wednesday showed the country's crude inventories fell by a larger than expected 10.6 million barrels last week, depleted by high exports and refinery runs.
Meanwhile, analysts expect Saudi Arabia to extend a voluntary oil production cut of 1 million barrels per day (bpd) into October, adding to cuts put in place by the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a combination known as OPEC+.
«With Brent prices having stalled in the mid-$80s… the prospect of those Saudi barrels returning to the market any time soon looks slim and the impact is increasingly being felt across the world as commercial stock levels of crude and fuel products continue to drop,» said Saxo Bank analyst Ole Hansen.
U.S. consumer spending increased 0.8% last month, the Commerce Department reported on Thursday, but slowing inflation strengthened expectations that the Federal Reserve would keep interest rates unchanged next month.
The Fed can end its cycle of increases to interest rates if the labour market and economic growth continue to slow at the current gradual pace, the former president of the Boston Fed said on Wednesday.
Weak Chinese factory data limited further gains, however.
China's
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