Oil jumps 5% on signs of increasing demand, inventory decline

Date:

Oil prices surged more than 4% on Wednesday, after a report from the International Energy Agency, followed by U.S. inventory data boosted optimism about returning demand for crude.

Thank you for reading this post, don't forget to subscribe!

Brent crude futures rose $2.91, or 4.57%, to settle at $66.58 per barrel. U.S. West Texas Intermediate (WTI) crude futures settled $2.97, or 4.94%, higher at $63.15 per barrel.

U.S. crude inventories fell by 5.9 million barrels last week, the Energy Information Administration said, exceeding analysts’ forecasts for a 2.9 million-barrel drop. East Coast crude stocks hit a record low.

Gasoline supplied in latest week, indicating the U.S. consumption of the fuel, rose to 8.9 million barrels per day, the highest since August, the EIA report showed.

Gasoline stocks edged higher by 309,000 barrels, less than expectations for a 786,000-barrel rise. Distillate stockpiles fell by 2.1 million barrels in the week, versus expectations for a 971,000-barrel rise.

“All in all, it was a very supportive report,” said Phil Flynn, senior analyst at Price Futures Group in Chicago. “It really looks like we’re getting a return to some more solid demand numbers and that should keep us going.”

Earlier in the session, oil prices rose on a report from the International Energy Agency that predicted global oil demand and supply were set to rebalance in the second half of the year. It added that producers may then need to pump an additional 2 million bpd to meet the expected demand.

“That IEA report is one of the best ones we’ve seen them publish in awhile in terms of being optimistic about the continued rebound in demand,” said John Kilduff, partner at Again Capital in New York.

Similarly, the Organization of the Petroleum Exporting Countries on Tuesday raised its global demand forecast by 70,000 bpd from last month’s forecast and now expects global demand to rise by 5.95 million bpd in 2021.

Signs of a strong economic recovery in China and the United States have underpinned recent price gains, but stalled vaccine rollouts worldwide and soaring COVID-19 cases in India and Brazil have slowed the market’s advance.

Naija247news
Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

Share post:

Subscribe

Popular

More like this
Related

Kaduna Governor Advocates for State Police Amidst Banditry Challenges

Kaduna State Governor, Uba Sani, emphasized the urgent need...

EFCC Retrieves 324 Houses for Kano Pensioners in Alleged N4.1 Billion Property Fraud

Yesterday, the Economic and Financial Crimes Commission (EFCC) handed...

“More CBN Directors Face Dismissal Amidst Controversy”

Twelve additional directors of the Central Bank of Nigeria...

NNPCL’s Kyari to Feature Prominently at 2024 CERAWeek Conference

Mr. Mele Kyari, the Group Chief Executive Officer of...

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading