Oil Jumps on Report of Falling U.S. Stockpiles and Iran Tension - Bloomberg

Oil Jumps on Report of Falling U.S. Stockpiles and Iran Tension - Bloomberg:

Oil jumped to the highest in a week as an industry report showing a continued draw-down in U.S. crude inventories tightened a supply outlook that’s being threatened by rising tension in the Middle East.

Futures in New York rose as much as 2.7% on Wednesday, as Federal Reserve Chairman Jerome Powell signaled that policy makers may cut interest rates as soon as this month. The American Petroleum Institute reported nationwide stockpiles fell by 8.13 million barrels last week, according to people familiar with the data. Government inventory figures are due to be published later Wednesday.

West Texas Intermediate crude for August delivery gained as much as $1.56, or 2.7%, to $59.39 a barrel on the New York Mercantile Exchange, the highest since July 2. It traded at $59.39 as of 2:07 p.m. London time. The contract has rallied 5.7% since last Tuesday’s close.

Brent for September settlement increased $1.73, or 2.7%, to $65.89 a barrel on the ICE Futures Europe Exchange. The global benchmark crude traded at a $6.39 premium to WTI for the same month.