Oil rises on expectation high natural gas to drive switch for heating

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Commodities53 minutes agone (Oct 13, 2021 10:07PM ET)

Oil rises connected  anticipation  precocious   earthy  state  to thrust  power   for heating © Reuters.

By Yuka Obayashi

TOKYO (Reuters) - Oil prices roseate connected Thursday, reversing erstwhile losses, connected expectations that precocious prices arsenic wintertime approaches whitethorn thrust a power to lipid to conscionable heating request needs.

futures gained 28 cents, oregon 0.3%, to $83.46 a tube astatine 0107 GMT aft falling 0.3% connected Wednesday.

U.S. West Texas Intermediate (WTI) crude futures climbed 22 cents, oregon 0.3%, to $80.66 a barrel, aft dropping 0.3% the erstwhile day.

"Investors stake that surging state prices volition promote powerfulness generators to power to lipid arsenic wintertime request play is approaching," said Hiroyuki Kikukawa, wide manager of probe astatine Nissan (OTC:) Securities.

Prices were besides supported by concerns astir proviso tightness aft the U.S. Energy Information Administration (EIA) said connected Wednesday that crude lipid output successful the United States, the world's biggest producer, is going to diminution successful 2021 much than antecedently forecast thought it volition bounce backmost successful 2022.

"The existent tightness successful the crude marketplace and near-term outlook for seasonal request increases lent enactment to investors' sentiment, outweighing a bigger-than-expected physique successful the inventories and weaker request forecast by OPEC," Kikukawa said. 

The American Petroleum Institute (API) said precocious connected Wednesday that U.S. crude stockpiles roseate by 5.2 cardinal barrels for the week ended Oct. 8, according to marketplace sources who saw the API data.

The API besides reported gasoline inventories fell by 4.6 cardinal barrels and distillate stocks fell by 2.7 cardinal barrels, the sources said.[API/S]

Analysts successful a Reuters canvass expected crude inventories to emergence by 700,000 barrels.[EIA/S]

The Organization of the Petroleum Exporting Countries (OPEC) trimmed its satellite lipid request maturation forecast for 2021 successful its latest monthly study connected Wednesday, portion maintaining its 2022 view.

However, the shaper radical said rising earthy state prices could boost request for lipid products arsenic extremity users power fuels.

The EIA volition merchandise its inventory study aboriginal connected Thursday astatine 11 a.m. EDT (1500 GMT).

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