2023-06-28 19:43:00
Brent ended up 2.44% at $74.03 and WTI ended up 2.74% at $69.56.
Oil prices rebounded strongly on Wednesday after a massive drawdown in US crude inventories reflecting strong exports and buoyant gasoline demand.
A barrel of Brent from the North Sea, for August delivery, gained 2.44% to 74.03 dollars.
Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery the same month, climbed 2.74% to 69.56 dollars.
Commercial crude reserves in the United States shrunk by 9.6 million barrels, according to figures released Wednesday by the US Energy Information Agency (EIA). This is much more than expected by analysts who bet on an average decrease of 1.5 million barrels.
The US government has also drawn another 1.4 million barrels from the Strategic Petroleum Reserves (SPR), which amount to 348.6 million barrels.
“Between the decline in commercial stocks and that of strategic reserves, 11 million barrels have been used, associated with very good demand for gasoline in the past two weeks, which is helping prices rise,” commented for AFP Andy Lipow, analyst of Lipow Oil Associates.
Gasoline demand has risen to more than 9.3 million barrels per day for the past two weeks, “which is a very good number for the start of the car travel season” in the United States, first oil consumer.
The travel season begins with the July 4 National Day long weekend, noted Andy Lipow.
The overall reduction in crude inventories is also explained by a nice increase in crude exports (+795,000 barrels per day, b/d).
At 5.3 million b/d exported, “we are approaching the record”, underlined Mr. Lipow.
Since May, oil prices have been contained, hampered by investors’ lack of appetite for risk, while central banks around the world are raising their rates to compress inflation.
“Concerns about rate hikes, but declining reserves. This latest information as well as the actions of OPEC”, which limits its production to perk up prices, “could create a floor for prices”, estimated Neil Wilson, analyst at Finalto.
Saudi Arabia, the world’s largest exporter, announced in early June that it was lowering its production even further to rebalance the market, an action which initially pushed prices up but whose upward effect has since completely evaporated.
1688006463
#Oil #jumps #stocks