Oil rises in price on data on a decrease in US inventories

Oil rises in price on data on declining US inventories

Benchmark crude prices rose during trading on Wednesday following the release of official data on US crude inventories.

The cost of November futures for Brent oil on the London ICE Futures stock exchange by 18:24 Moscow time was $ 42.21 per barrel, which is $ 0.49 (1.17%) higher than the price at the close of the previous session.

The price of futures for WTI crude oil for November at the New York Mercantile Exchange (NYMEX) by this time increased by $ 0.48 (1.21%) – up to $ 40.28 per barrel.

Commercial oil reserves in the United States last week decreased by 1.64 million barrels – to 494.41 million barrels, according to the weekly report of the country's Department of Energy.

Gasoline inventories fell by 4.03 million barrels to 227.5 million barrels. Commercial stocks of distillates fell 3.36 million barrels to 175.94 million barrels.

Experts interviewed by Bloomberg expected a decline in oil inventories by 3.27 million barrels, a decrease in gasoline inventories by 921 thousand barrels and an increase in distillate stocks by 1 million barrels.

Analysts polled by S&P Global Platts expected the US Department of Energy data to show a 4 million barrel decline in oil inventories last week. According to their estimates, stocks of gasoline decreased by 1.9 million barrels, distillates – increased by 1.2 million barrels.

According to the data of the American Petroleum Institute (API), published on the eve, oil reserves in the United States in the week ended September 18, rose by 691 thousand barrels. Gasoline inventories, according to API, fell by 7.7 million barrels, distillates – by 2.1 million barrels.

A recovery in demand for risky assets, including commodities, is supporting the quotes on Wednesday, said Oanda senior market analyst Craig Earlam, quoted by MarketWatch.

However, according to him, the rise in the market may be difficult in the short term amid the increase in the number of infections with coronavirus infection COVID-19 and related restrictions, which are likely to negatively affect economic activity and, accordingly, the demand for oil.

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