26-07-2018 05:00 PM
Oil prices climbed on Thursday after data from the Energy Information Administration (EIA) revealed a large draw in U.S. crude supplies.
Crude Oil prices were trading at $ 69.53 at the time of preparing this report.
According to data from the EIA - Inventories of U.S. crude dropped by 6.147 million barrels for the week ended July 20, much more than hope for a draw of 2.600 million barrels.
The EIA added - The huge draw in crude supplies appeared as imports dropped by 2.518 million barrels a day (bpd) and exports rose by 1.222 million bpd.
Gasoline inventories dropped by 2.328 million barrels, summiting prospect for a draw of 0.713 million barrels.
In the interim, news that Saudi Arabia is for the time being halting all oil shipments through the Red Sea shipping lane of Bab al-Mandeb after an attack on two big oil tankers by Yemen's Iran-aligned Houthi movement pushed oil prices further high.
Subsequent to the attack, Saudi Energy Minister Khalid al-Falih said in a statement that one of the crude carriers sustained minimal damage. He added - "Saudi Arabia is momentarily halting all oil shipments through Bab al-Mandeb Strait straight away until the state of affairs becomes clearer and the maritime shipment through Bab al-Mandeb is safe."
The loss of Iran crude has also supported sentiment on oil prices this week after President Donald Trump on Monday cautioned his Iranian counterpart, Hasan Rouhani that fear against the U.S. would be met "with consequences few in history have suffered."