Crude oil prices rose by 0.6% during yesterday’s trading session, ultimately closing at 6551. This increase was primarily driven by a notable decline in oil inventories. The US oil stockpiles dropped by 2.508 million barrels more than anticipated, according to data released by the Energy Information Administration (EIA), exceeding market expectations.
In addition, surprise drops in inventories of distillate fuel and petrol helped to improve market mood. Global demand patterns continued to be a source of concern, notwithstanding the positive inventory figures. The International Energy Agency (IEA) lowered its projection for the year’s rise in world demand by 140,000 barrels per day (bpd), citing weak industrial activity and declining gasoil consumption, especially in Europe.
Furthermore, according to the most recent OPEC report, OPEC+ countries produced 568,000 bpd more last month than they were allowed to. OPEC, however, is still upbeat about demand going forward, projecting a continuous increase in demand in 2024 and 2025.
The American Petroleum Institute’s (API) Weekly Statistical Bulletin shows that for the week ending May 10th, crude oil stocks in the US had a significant decrease of 3.104 million barrels. This steep decline was a major departure from market forecasts and represented the biggest weekly decline in the previous three weeks.
