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Oil prices rally on big draw

The American Petroleum Institute (API) reported Tuesday a 5.821 million-barrel draw for crude oil stocks for the week ending Jan. 8.

Analysts had forecast an inventory of 2,266 million barrels for the week.

In the previous week, the API reported a draw in oil inventories of 1,663 million barrels, after analysts had predicted a pull of 1,271 million barrels.

Both Brent and WTI were up Tuesday afternoon before the data release, still encouraged by Saudi Arabia’s generous offer last week to individually – and voluntarily – cut another 1 million barrels a day from its oil production in February and March.

And even though oil prices are now at 11 months, coronavirus-inspired lockdowns continue to draw on any hope of an oil demand that dampens oil price gains.

An hour before Tuesday’s data release, the WTI had risen $ 0.90 on the day (+ 1.72%) to $ 53.14, up more than $ 3 per day. Barrel a week. The Brent crude benchmark market had risen that day $ 0.89 at the time (+ 1.60%) to $ 56.55 – an increase of almost $ 3 per share. Barrel a week.

US oil production remained stable at 11.0 million bpd for the fourth week in a row, according to the latest data from the Energy Information Administration. This is still millions of barrels below the 13.1 million bpd altitude reached in March 2020.

The API reported a build-up of 1.876 million barrels of gasoline for the week ending January 8 – compared to the previous week’s 5.473 million barrels. Analysts had expected 2.695 million barrels for the week.

Distillate inventories also saw another big increase of 4.433 million barrels for the week compared to last week’s 7.136 million barrels, while Cushing’s inventories fell this week by 232,000 barrels.

16:34 EDT traded the WTI benchmark at $ 53.16, while Brent Crude oil traded at $ 56.56.

By Julianne Geiger for Oilprice.com

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