Oil prices rise as US inventories tighten as winter blast hits
We’re going to the west Texas Intermediate crude oil (WTI) futures rose 35 cents, or 0.5%, to $78.64 a barrel, while Brent crude futures rose 27 cents, or 0.3%, to 82 $.47 at 0145 GMT, extending gains of around 2.7% in the previous session.
Both benchmark contracts rose on Wednesday after government data showed U.S. crude inventories fell more than analysts had expected, falling 5.89 million barrels in the week ended Dec. December 16.
At the same time, distillate stocks, which include heating oil and jet fuel, fell, despite expectations for an increase.
Stocks fell as demand for heating oil surged with a strong winter storm making landfall in the United States, expected to bring sub-zero winds as far south as Texas and record lows in the United States. Florida and the eastern states.
Jet fuel consumption is also expected to increase due to the post-COVID boom in tourism for the year-end festive season.
“According to our data…the crude oil market is very balanced,” said National Australia BankHead of Commodity Research Baden Moore. “When we look at 2023, we see China“The reopening and global jet demand is likely to continue steadily increasing (towards 2019 levels) will tighten the global crude market and push prices higher,” he said.
A weaker US dollar has also supported oil prices, as crude becomes cheaper for buyers holding other currencies.