Oil prices jump on a large inventory draw



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Crude oil prices jumped higher today after the Energy Information Administration reported a crude oil inventory draw of 9.9 million barrels for the week ending Jan. 22. Fuel stocks were mixed.

Crude oil draw compared to a build of 4.4 million barrels for the previous week. He also compared analysts’ expectations for a modest increase of around 600,000 barrels.

In gasoline, authorities reported an increase in inventories of 2.5 million barrels for the week ending Jan. 22, with average production of 8.7 million bpd. This compares to a modest drop in inventories of 300,000 barrels and an average production of 8.9 million bpd the week before.

Middle distillates lost 800,000 barrels last week, up from half a million barrels the week before. Production averaged 4.5 million bpd for the second week in a row.

A day before the EIA released its weekly oil report, the American Petroleum Institute released its own estimate of oil inventories, which was for a draft of 5.272 million barrels. As this amount far exceeded analysts’ expectations, oil prices increased slightly. Related: The 5 Best Utility Actions in 2021

Prices were also supported by reports of possible supply disruptions from Iraq and Libya. The former has said that it plans to cut production in line with its commitments under the OPEC + deal, while the latter’s exports are threatened by the Petroleum Facilities Guard, which claims to have wages.

Meanwhile, the IMF has said it expects oil prices to average $ 50 per barrel this year, which would be significantly higher than the 2020 average but lower than the 2019 average. , the forecast was an upward revision of previous IMF oil price forecasts. signaling that the market is improving, but slowly.

At the time of writing, Brent is trading at $ 55.62 a barrel, and West Texas Intermediate is changing hands at $ 52.27 a barrel. Both were down since the trade opened today.

By Irina Slav for OilUSD

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