Oil rises on US crude stock draw, Red Sea attack
By Noah Browning
LONDON (Reuters) -Oil prices rose on Thursday after data showed U.S. crude stockpiles fell more than expected last week and a fresh attack by Houthi forces on ships off Yemen's coast underscored the peril facing trade in a key global transit route.
Brent crude futures were up 86 cents, or 1.1%, to $80.90 a barrel at 1325 GMT, while U.S. West Texas Intermediate crude was up 92 cents, or 1.2%, to $76.01 a barrel.
U.S. crude stockpiles tumbled by 9.2 million barrels last week, the Energy Information Administration said, while analysts in a Reuters poll had expected a 2.2 million-barrel draw.
The draw was driven by a stark drop in U.S. crude imports as winter weather shut in refineries and kept motorists off the road.
U.S. crude output fell from a record-tying 13.3 million barrels per day (bpd) two weeks ago to a five-month low of 12.3 bpd last week after oil wells froze.
Geopolitical tensions in the Middle East remained in focus.
In the latest blow to shipping around the key Red Sea corridor, Maersk said nearby explosions forced two ships operated by its U.S. subsidiary and carrying U.S. military supplies to turn around when they were transiting the Bab al-Mandab Strait off Yemen.
A spokesman for Yemen's Houthi military said they fired ballistic missiles at U.S. warships protecting the two U.S. commercial vessels.
«We are finally seeing energy markets wake up to the distinct possibility that these supply chain disruptions will rumble on for months yet,» said Joshua Mahony, chief market analyst at Scope Markets.
«The prospect of a military solution to ensure safe passage looks unlikely.»
Oil prices also drew support from hopes for China's economic recovery.
China's central bank announced a deep cut in bank
Read more on investing.com
