Oil Prices Climb Up After Gasoline Stockpiles Drop
By Daisy Joseph
In the current scenario, the oil stockpiles report has a huge impact on the oil prices. On Wednesday trading in North America, oil prices increased slightly as the EIA inventory data was promising. The domestic crude supplies increased which is bad news for the market. However, the increase in oil price is mainly due to the decrease in gasoline stockpiles. The decrease was much greater than the forecast which has increased the investors’ interest.
The WTI crude futures were trading at $44.56 per barrel which gained 34 cents. Before the release of the inventory data, the price was in the range of $44.22.Similarly, Brent crude futures gained 0.7% reaching $47.26 per barrel. The crude prices have been increasing for the fourth consecutive session.
According to the EIA inventory data, crude oil inventories increased by 118,000 barrels. Industry experts were hoping for a reduction of 2.5 million barrels. However, the American Petroleum Institute reported a gain in the supply of 851,000 barrels. The crude oil inventories were at 509.2 million barrels which is greater than the average range.
The gasoline inventories reduced by 894,000 while the market experts predicted the reduction to be around 583,000 barrels. The distillate inventories also reported a decrease in the inventory by 223,000 barrels. The US Shale production output has been offsetting the decreased production of the OPEC members. For the past 23 weeks, the US drillers have been adding oil rigs, increasing the output.
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