Oil prices climb after drawdown in stocks, positive demand outlook

Reuters

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    * API shows crude, fuel stocks fell in wake of Ida -sources
    * Vaccines set to unleash pent-up oil demand -IEA
    * China to hold first state crude oil reserves auction on
Sept 24
    * Coming up: EIA inventory data at 1430 GMT on Wednesday

    By Jessica Jaganathan
    SINGAPORE, Sept 15 (Reuters) - Oil prices climbed on
Wednesday after industry data showed a larger than expected
drawdown in crude oil stocks in the United States, the world's
largest oil consumer, and on expectations that demand will
recover as vaccine roll-outs widen. 
    Brent crude oil  LCOc1  rose 39 cents, or 0.5%, to $73.99 a
barrel by 0133 GMT, while U.S. West Texas Intermediate (WTI)
crude  CLc1  climbed 44 cents, or 0.5%, to $70.90 a barrel.
    U.S. crude oil, gasoline and distillate stocks all fell last
week, according to two market sources, citing American Petroleum
Institute figures on Tuesday, after Hurricane Ida shut numerous
refineries and offshore drilling production.  API/S  
    Crude stocks fell by 5.4 million barrels for the week ended
on Sept. 10. Analysts on average had been expecting a drop of
3.5 million barrels.  urn:newsml:reuters.com:*:nL4N2QG38E 
    "The impact of Hurricane Ida was a lot greater than many
anticipated and production in the Gulf of Mexico region might
struggle to return until Tropical Storm Nicholas is done
punishing the region with torrential rain," said Edward Moya,
senior analyst at OANDA. 
    Tropical Storm Nicholas moved slowly through the Gulf Coast
on Tuesday, drenching the states of Texas and Louisiana with
torrential rain, flooding streets and leaving hundreds of
thousands of homes and businesses without power.  urn:newsml:reuters.com:*:nL1N2QG0DJ 
    Texas refineries continued to run normally, though, despite
the flooding and power outages.  urn:newsml:reuters.com:*:nL1N2QG0YO 
    The damage from Nicholas comes just two weeks after
Hurricane Ida knocked a significant amount of refining capacity
offline in the Gulf Coast this month. 
    Meanwhile, after a three-month slide in global oil demand
due to the spread of the Delta variant of the coronavirus and
renewed pandemic restrictions, vaccine roll-outs are set to
power a rebound, the International Energy Agency (IEA) said on
Tuesday, also helping to lift prices.  urn:newsml:reuters.com:*:nL1N2QG0JH 
    Details on China's plans to sell crude from strategic
reserves pressured prices, however, with China's state reserves
administration saying it would auction off 7.4 million barrels
of crude on Sept. 24.  urn:newsml:reuters.com:*:nL1N2QG0YI 
    
    

 (Reporting by Jessica Jaganathan)
 ((Jessica.Jaganathan@thomsonreuters.com; +65 6870 3822; Reuters
Messaging: jessica.jaganathan.thomsonreuters.com@reuters.net;
Twitter: https://twitter.com/j3ssi3))

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