Oil prices jump over after drawdown in US stocks: Market wrap

At 417.4 million barrels, US crude oil is about 7 percent below the five-year average for this time of year.

US gasoline decreased by 1.9 million barrels last week to its lowest since Nov 2019 and is about 4 percent below the five-year average for this time of year.

Brent crude rose $2.12, or 2.9 percent, to $75.72 a barrel by 11:14 a.m. ET (1514 GMT), while US West Texas Intermediate crude climbed $2.28, or 3.3 percent, to $72.75 a barrel.

Earlier in the session, Brent touched $76.13 a barrel, a contract high, and the highest outright price since late July.

Nord Stream 2

A speedy launch of operations at its Nord Stream 2 pipeline to Germany — seen by opponents as a geopolitical tool — would help combat surging gas prices in Europe, the Kremlin said on Wednesday.

Mexican state oil company Petroleos Mexicanos (Pemex) has canceled three contracts with Vitol, the latest fallout from a US bribery case involving the world’s largest independent energy trader, according to Reuters.

Mega refinery

Africa’s richest man Aliko Dangote is in talks with some of the world’s biggest oil traders to help finance his mega refinery project outside of Nigeria’s commercial center Lagos, sources with knowledge of the matter said to Reuters.

The 650,000 barrel-per-day refinery, once completed, will be the continent’s largest plant and redraw major trade flows of crude and fuel in the Atlantic basin.

Egypt’s oil

Egyptian Minister of Petroleum and Mineral Resources Tarek El Molla expects the next period to see growth in oil activities as oil prices improve, paving the way for increased investment, new discoveries, and increased production.

The IEA has adjusted global oil demand since last month’s report to 5.2 million barrels per day for 2021, while 2022 growth is slightly higher at 3.2 million barrels.