RIYADH: Oil prices eased on Wednesday after industry data showed US crude stockpiles rose more than expected, but losses were capped by supply worries.
Brent crude futures for December fell 97 cents, or 1.04 percent, to $92.55 a barrel by 08.45 a.m Saudi time.Â
US West Texas Intermediate crude futures for December were down 68 cents, or 0.8 percent, to $84.64, reversing the previous session’s gain.
Valero expects more US emergency oil releases
Oil refiner Valero Energy said it expects the Biden administration to continue releasing oil from the US emergency reserve through year-end and will continue buying barrels.
President Joe Biden last week announced a plan to release 15 million barrels from the Strategic Petroleum Reserve — part of a record 180 million-barrel release that began in May. The US is ready to tap reserves again next year if needed, he said.
Reserves released in the early days of the program were primarily sour crude, or crude with higher sulfur content, but more recent sales included more low-sulfur, sweet oil.
Valero sees value in buying sweet crude for its refining system, President Lane Riggs said on Tuesday. The refiner currently tops the list of companies that have received barrels from the US reserve.
Riggs added that he expects some restocking of the SPR next year.
Biden announced a plan to replenish stocks when US crude is around $70 a barrel, a level he said would still allow companies to profit while being a good deal for taxpayers. The US benchmark was around $85 on Tuesday.
Valero on Tuesday reported bumper profits that zoomed past Wall Street estimates, helped by discounts on high-sulfur, sour crude that boosted margins.
Halliburton profit rises as higher oil prices spark drilling demand
Halliburton Co. posted a rise in profit for the third quarter on Tuesday, wrapping up an upbeat earnings season from the world’s top oilfield services providers on strong demand fueled by higher oil prices.
The Houston-based company’s net income rose to $544 million, or 60 cents per share, for the quarter that ended Sept. 30, from $236 million, or 26 cents per share, a year earlier.
(With input from Reuters)
