Hurricane Francine causes offshore production shutins
About 24 of crude production in U.S. Gulf of Mexico shut
API shows weekly U.S. crude, gasoline stockpiles fall
LONDON, Sept 11 Reuters Oil climbed more than 2 on Wednesday, paring some of the previous day39;s losses, as a drop in U.S. crude inventories and concern about Hurricane Francine disrupting U.S. output countered concerns about weak global demand.
U.S. crude stocks fell by 2.793 million barrels, gasoline declined by 513,000 barrels and distillates inventories rose by 191,000 barrels, according to market sources citing the latest week39;s American Petroleum Institute figures on Tuesday.
Brent crude futures were up 1.41, or 2.04, to 70.60 a barrel at 1048 GMT, while U.S. crude futures gained 1.79, or 2.7, to 67.54.
The API provided some comfort as it showed a sizable decline in crude oil stocks, a forecastbeating draw in gasoline and a tiny build in distillate inventories, said Tamas Varga of oil broker PVM.
Both oil benchmarks tanked on Tuesday, with Brent falling below 70 to its lowest since December 2021 and U.S. crude dropping to its lowest since May 2023, after OPEC revised down its 2024 oil demand growth forecast for a second time.
Concern about Hurricane Francine disrupting output in the United States, the world39;s biggest producer, also lent support, other analysts said.
The market rebounded autonomously as Tuesday39;s drop was substantial, said Yuki Takashima, economist at Nomura…