Oil soars on U.S. inventory report, supply fears

As of noon New York time today, U.S. benchmark West Texas Intermediate is up 3.30%. International benchmark Brent is ahead 2.41%.

The climb follows on data from the Energy Information Administration showing a huge draw of 9.9 millions barrels in U.S. crude stockpiles for the week ended June 22. This follows on yesterday’s report from the American Petroleum Institute of a draw down of 9.2 million barrels.

Inventories at the Cushing, Oklahoma, delivery hub fell by 2.7 million barrels.

Add in fear of that Saudi Arabia might run out of space production capacity, uncertainty over the future of oil exports from Iran, and a production shutdown into late July at Syncrude in Canada and you’ve got a heady mixture for energy stocks. The Energy Select Sector SPDR ETF (XLE) is up 1.82% this morning. Shares of Chevon (CVX) are ahead 1.84%. Pioneer Natural Resources (PXD) is higher by 3.59% and Diamondback Energy (FANG) has gained 3.69%. Anadarko Petroleum (APC) is higher by 2.39%. and Equinor (EQNR) shares are up 1.91%.