Oil Bounces From One-Month Low as U.S. Supply Hub Seen Draining
- Genscape report is said to show draw from Cushing stocks
- Iran said to plan military exercise in Strait of Hormuz
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Oil recovered from the lowest level in more than a month amid signs the supply drain from the biggest U.S. supply hub will continue and heightened geopolitical tension.
Futures rose 1.9 percent after a Genscape report was said to show Cushing, Oklahoma, inventories sank 1.1 million barrels from Friday to Tuesday. The rally was further boosted when U.S. government officials told Reuters that Iran plans to hold a military exercise in the Strait of Hormuz in the coming days. Futures touched the lowest since June 22 earlier after reports that OPEC and Russia boosted production.