Oil prices maintain gains after US crude inventory slump.

By Sonali Paul and Koustav Samanta

MELBOURNE / SINGAPORE (Reuters) – Oil prices rose on Thursday, extending their 2% gains from the previous session, after data showed that US crude stocks fell last week, while OPEC and its allies fulfilled their pact to halt production in September. .

West Texas Intermediate (WTI) crude futures were up 8 cents, or 0.2%, to $ 41.12 a barrel at 0430 GMT, while Brent crude () futures were up 7 cents, or 0, 2%, at $ 43.39 a barrel.

Oil markets rose for a third day despite the resurgence of COVID-19 infections in Europe, which could affect demand for fuel.

“The energy markets are certainly going at their own pace right now,” said Michael McCarthy, chief market strategist at CMC Markets and Stockbroking, adding that recent oil price volatility may have attracted more trader positions.

The American Petroleum Institute industry group said US crude, gasoline and distillate inventories fell in the week through October 9, according to a report released after the market closed on Wednesday.

Crude stocks fell by 5.4 million barrels, while distillates, which include diesel y, fell by 3.9 million barrels. Those reductions were almost double the expectations of analysts in a Reuters poll.

“Much of the drop is due to the effects of Hurricane Delta which paralyzed US production in the Gulf of Mexico and as such will be a transitory effect,” said Jeffrey Halley, senior market analyst for Asia Pacific at OANDA.

“So I’m not overly excited about a change in direction in the markets, although both contracts are approaching important regions of technical resistance.”

Brent could fall to $ 42.55 a barrel, after failing to break resistance at $ 43.44, Reuters technical analyst Wang Tao said on Thursday.

The US Energy Information Administration is required to release its weekly data on Thursday, one day later than normal after a holiday.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, together called OPEC +, were 102% compliant with their agreement to cut oil supplies in September, two OPEC + sources told Reuters before a committee meeting OPEC + technician on Thursday to review the oil market.

ANZ Research pointed to strong gains in China’s crude oil imports in September and purchases by Indian refineries ahead of two major festivals that will help support the market.