US crude oil prices continue to rise after Tuesday’s strongest rise this year. The industry report on US crude oil reserves has already shown another decline in US crude oil reserves, brokers inform.
A barrel of West Texas Intermediate crude oil for February deliveries costs $ 81.40 on NYMEX in New York, up 0.22 percent.
Brent on ICE in London for March deliveries is trading at $ 83.76 a barrel, up 0.05 percent.
The US Petroleum Institute (API) said in its weekly US crude oil and product inventory last week that crude oil inventories fell by 1.077 million barrels. Crude oil stocks at the Cushing storage hub, in turn, fell by 3.659 million barrels.
On the other hand, gasoline inventories increased – by 10.86 million barrels, and distilled fuels increased by 3.035 million barrels.
US crude oil stocks have been declining for 7 weeks now.
Analysts forecasted that last week US crude oil inventories fell by 1.7 million barrels, and gasoline inventories increased by 3.1 million barrels.
On Wednesday, the US Department of Energy (DoE) will release official data on US crude oil inventories after 4.30 PM.
Meanwhile, at the end of Tuesday’s session, the WTI on NYMEX increased by 3.8 percent. – to the highest level since November 11, 2021, and Brent on ICE gained 3.5 percent. after US Federal Reserve Chairman Jerome Powell tried to reassure investors that the US central bank would hold back inflation in order to prolong US economic expansion.
In the markets, concerns about the impact of Omikron on the economy are slightly weakening, although investors are closely following the news, especially from China, where the authorities stick to their “zero Covid” policy, which is to eliminate the coronavirus by introducing local blockades.
Goldman Sachs Group Inc. however, it lowered its growth forecast for China this year to 4.3%. due to the possible difficulties in containing the spread of this extremely infectious variant of the coronavirus.
“But there are many factors supporting demand, and concerns about Omikron are starting to subside,” said Howie Lee, economist at Oversea-Chinese Banking Corp. – The situation on the oil market will remain tense for some time – he estimates.