Oil rises on tight US stocks as winter blast hits

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US reserves decline more steeply than expected, with heating oil demand growing as snowstorms spread

Jet fuel consumption is expected to pick up with a post-Covid boom in US travel for the end-of-year holiday season. Picture: BLOOMBERG/DAVID RYDER

Brent crude futures gained $0.74, or 0.9%, to trade at $82.94 at 0911 GMT, extending gains of around 2.7% from the previous session. Both benchmark contracts jumped on Wednesday after government data showed US crude inventories fell by much more than analysts had expected, posting a drop of 5.89-million barrels for the week ending on December 16.

Jet fuel consumption is also expected to pick up with a post-Covid boom in travel for the end-of-year holiday season, though transport fuel demand might be reduced if the storm keeps people from travelling.

 

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