Petroleum prices extended gains on Wednesday after U.S. government data showed tighter-than-expected crude supplies in the world’s biggest fuel consumer, while a hurricane in the Gulf of Mexico kept investors on edge.
Brent crude futures for October rose 21 cents to $85.70 U.S. a barrel. The October contract expires on Thursday and the more active November contract was at $85.13, up 22 cents.
U.S. West Texas Intermediate crude futures rose 30 cents to $81.46.
Both benchmarks rallied by more than a dollar on Tuesday as the U.S. currency weakened after soft U.S. jobs data reduced the likelihood of further increases to interest rates.
U.S. crude inventories fell by 10.6 million barrels in the last week to 422.9 million barrels, Energy Information Administration data showed on Wednesday. Analysts in a Reuters poll expected a 3.3-million-barrel drop.
Investors also had an eye on Hurricane Idalia, which came ashore as a Category 3 storm on Wednesday morning in a Florida region where the state’s northern panhandle curves into the Florida Peninsula.
The hurricane had moved over the Gulf of Mexico to the east of major U.S. oil and natural gas production sites. The region accounts for about 15% of U.S. oil output and about 5% of natural gas production, according to the EIA.
