Brent crude futures rose 55 cents, or 0.65%, to US$85.44 a barrel by 0700 GMT, while U.S. West Texas Intermediate crude was at US$81.14 a barrel, up 63 cents, or 0.78%
Energy giants BP and Shell unveiled sharp downturns in their usual earnings last week in a rocky third quarter for the sector, with the oil and gas industry failing to match last year’s record profits.
The Department of Energy has added a mere 5 million barrels to the reserve thus far this year.
After falling for the first three days of the week, oil prices have started to recover after both the Federal Reserve and Bank of England decided not to hike interest rates.
Oil prices slipped more than 1% on Monday as investors adopted caution ahead of a U.S. Federal Reserve policy meeting and China’s manufacturing data due this week, offsetting support from tension in the Middle East.
The war in the Middle East could push crude oil prices to $150 per barrel if it spreads across the region, the World Bank warned this week.
The U.S. would probably happily re-load its Strategic Petroleum Reserve (SPR), but it is very difficult to do so while the global oil market is running a deficit.
Shell PLC has completed the sale of Indonesia’s Masela block for $650 million, in another divestment of Southeast Asian assets that it said is part of its focus on “disciplined capital allocation”.
Libya’s parliament has called for halting oil exports to backers of Israel amid relentless airstrikes on the Gaza Strip.
Public records show Ohio regulators log hundreds of incidents each year dealing with chemical releases related to the oil and gas industry.