In the areas affected by the hurricane, gasoline prices rose even more, but they still remained below the national average.
"The magnitude of the price drop in the current cycle is the highest of all cycles in real terms", h e said.
"OECD product stocks were only 35 million barrels above the five-year average at end-July", the IEA said. The worldwide benchmark for the famous Brent crude LC0c1 was dwindling down by a good 35 cents down and settling to $53.49 per barrel on earlier market trading as opposed to its previous close price. Opec crude output fell in August for the first time in five months, after renewed turmoil in Libya disrupted supply and others pumped less, IEA data showed.
On the other hand, the U.S. West Texas Intermediate or WTI CLc1 was also dragged down by the vast Hurricane pressure and was losing as much as 30 cents at $47.77 per barrel; while the largest local U.S. refinery, Motiva Port Arthur extends shut down after recuperating from the mass effect of Hurricane Harvey and now Irma.
This week's gains have come despite data showing a big build in US crude inventories after Hurricane Harvey.
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The government also said distillates, which include heating oil, declined by 3.2 million barrels, well above the forecast for a 300,000-barrel draw.
Irma's hit in demand will partly offset the Gulf Coast's interrupted refinery runs, which are taking longer than expected to recover, according to the bank.
Meanwhile, the U.S. Energy Information Administration reported that gasoline stockpiles fell by 8.4 million barrels last week, the largest weekly drop on record in EIA data going back to 1990. This will support efforts by Opec countries and other producers including Russian Federation, that have combined forces to curb global supplies by around 1.8m b/d to ease inflated oil stockpiles and boost prices.
"OECD demand growth continues to be stronger than expected, particularly in Europe and the USA", the report said, noting a rebound in economic growth in both areas. On September 11, 2017, USA crude oil futures again moved above the 20-day moving average. The IEA said it is time to reexamine the region's energy security with the United States adding refined products to the country's strategic petroleum reserves alongside crude.
The IEA report confirmed the same trend highlighted in OPEC's monthly report out Tuesday.