The American Petroleum Institute (API) reported on Tuesday that crude oil inventories for the week ended January 8 were 5.8210 million barrels.
Analysts had expected inventories to be 2.266 million barrels this week.
In the previous week, API reported that oil inventories were 16.63 million barrels, after analysts had previously predicted the figure to be 12.71 million barrels.
Brent crude oil and West Texas Intermediate oil both rose on the Tuesday afternoon before the data were released, but they were still boosted by Saudi Arabia’s generous offer last week, which voluntarily reduced production by 1 million barrels per day in February and March .
Even if oil prices are currently at an 11-month high, the lockdown inspired by the coronavirus continues to drag down any hope of a rebound in oil demand, thus restraining oil price increases.
An hour before the release of the data on Tuesday, WTI rose by US$0.90 (+1.72%) to US$53.14 on the day, rising more than US$3 per barrel in a week. The benchmark price of Brent crude oil rose by US$0.89 (+1.60%) to US$56.55 on the same day, up nearly US$3/barrel in a week.
According to the latest data provided by the US Energy Information Administration, US oil production remained at 11 million barrels per day for the fourth consecutive week. This is still several million barrels lower than the 13.1 million barrels per day reached in March 2020.
API reports that gasoline inventories for the week ending January 8 were 1.876 million barrels, compared with 5.473 million barrels of gasoline produced last week. Analysts had expected an increase of 2.695 million barrels in production this week.
Last week, distillate stocks increased by 4.433 million barrels, while last week’s oil reserves increased by 7.336 million barrels, while Cushing’s inventory fell by 232,000 barrels.
At 4:34 pm Eastern Time, the WTI benchmark trading price was $53.16, while the Brent crude oil trading price was $56.56.
Designed by Julianne Geiger for Oilprice.com
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