Oil up 1 percent; Cushing draw data offset by Wall Street drop

Thu Sep 24, 2015 3:31pm EDT
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By Barani Krishnan

NEW YORK (Reuters) - Oil prices rose as much as 1 percent on Thursday, boosted by inventory draws at the U.S. crude futures' delivery hub although gains were capped by tumbling equity prices on Wall Street.

Market intelligence firm Genscape estimated a drawdown of 625,000 barrels out of the Cushing, Oklahoma delivery point for U.S. crude in the week to Sept. 22.

The Genscape estimate, coming after a stockpile drop of 462,000 barrels at Cushing reported by the U.S. Energy Information Administration (EIA) last week, drove up prices of both U.S. crude and global oil benchmark Brent.

But an equity markets selloff trimmed the gains in oil, as the Standard & Poor's 500 index .SPX for U.S. stocks fell on concerns of slowing global economic growth. [.N]

"There was a technical bounce after the Genscape numbers were noticed by the market, though there were also new lows from sell-stops after the S&P tanked," said Peter Donovan, broker at New York's Liquidity Energy.

U.S. crude CLc1 settled up 43 cents, or almost 1 percent, at $44.91 a barrel. It rose 69 cents at the session peak and fell 77 cents at the low.

Brent LCOc1 settled up 42 cents, or 0.9 percent, at $48.17.

Oil is down more than 25 percent so far this quarter.   Continued...

A pump jack is seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson