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Wall Street Drop Offsets Cushing as Oil Drops 1.0

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Published on : Sep 25, 2015

Oil costs have risen by 1.0% on Thursday. The oil prices were boosted by the draws in inventory made at the delivery hub of U.S. crude futures. However, the gains were topped off by falling equity prices on Wall Street.

The Cushing, Oklahoma delivery point has experienced an estimated 625,000 barrels worth of drawdown, in this week.

The estimate was created using a stockpile fall of 462,000 barrels at Cushing that was reported by the U.S. Energy Information Administration a week ago. The fall had propelled the oil prices, especially of the U.S. crude and then the global oil benchmark, Brent.

However, the selloff from equity markets has cut down the oil gains. There was a fall in the Standard and Poor’s 500 index for the stocks in the U.S. They fell due to concerns of a sluggish global economic growth.

Peter Donovan, the New York Liquidity Energy’s broker, said that most companies noticed a technical bounce after the estimates came in, although there were new lows after the S&P fell from the sell-stops.

The U.S. crude steadied to 43 cents, which is 1.0%, at a per barrel price of US$44.91. At its high, it rose to 69 cents and at its low, it slipped 77 cents.

Brent, meanwhile, steadied at 0.9%, or 42 cents, at US$48.17. For this quarter, so far, oil has be down more than 25.0%.

The U.S. crude fell on Wednesday by 4.0%, right after the EIA reported a growing stockpile of gasoline.