Oil Nears $50 per Barrel

On Wednesday the London Brent crude oil price rose to $49.76, and U.S. light crude was up by $.40 to $46.76. The drawdown in U.S. crude oil stocks was the key factor in the rising oil price. API reported that stocks at Cushing, Ok were down 500,000 barrels and U. S. crude stockpiles fell to 3.7 million barrels the week of Sept 15th. Weak economic manufacturing data from China may have had a negative impact. However, total U.S. oil inventory is at a record high, and the drawdown on crude oil stock is seem as rebalancing the domestic oil market.