Already buoyant oil prices got a late-week boost after delayed stock data showed a huge draw in US crude tanks. US Energy Information Administration (EIA) data released a day late because of the Labor Day holiday showed crude stocks plunging 14.5 million barrels in the week ending Sep. 2, the largest draw since January 1999, and confounding market expectations of a slight build. US domestic pricing benchmark WTI gained more than $1.50 per barrel in a single minute of trade involving 33,000 futures contracts on Thursday. Analysts attributed the drop in US crude tanks to Tropical Storm Hermine, which affected imports and offshore production, at a time when US refinery crude demand was running at its highest this year. International benchmark Brent settled at $49.99/bbl Thursday, up $4.54/bbl on the week, while US pricepin WTI put on $4.46/bbl to close at $47.62/bbl. Oil prices had already been rising on improving chances the world’s top producers will agree to an output freeze later this month after Saudi Arabia and Russia signed a cooperation pact aimed at stabilizing crude prices. According to a joint statement issued at the G20 summit in China, the two countries agreed to form a working group to monitor market fundamentals and recommend measures to restore stability. Saudi Energy Minister Khalid al-Falih and Russian counterpart Alexander Novak gave no further details on what action would be taken at the press conference, but in a later interview with Saudi TV channel Al Arabiya, al-Falih said a production freeze was ‘not necessary now.’
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