U.S. Oil prices rose on Wednesday after the fall in crude oil prices strengthened OPEC’s strong demand outlook, while the market expected new updates on the collapse of the colonial pipeline.
U.S. West Texas Intermediate (WTI) crude futures rose 29 cents, or 0.44%, to $ 65.57 a barrel at 0646 GMT, up 36 percent on Tuesday.
Brent crude futures rose 31 cents, or 0.45%, to $ 68.86 a barrel, gaining 23 percent on Tuesday.
“Oil markets maintained a wait-and-see approach to noise and tail-chasing elsewhere overnight,” Geoffrey Haley, OANDA’s senior market analyst, wrote in a note on Wednesday.
“The colonial pipeline is pulling the Cypriot Saga, which is now causing material shortages in the eastern United States.”
Petrol stations from Florida to Virginia began running out
The U.S. The price of unleashed petrol averaged $ 2.99 a gallon, the highest since November 2014, according to the American Automobile Association.
“If prolonged downturn contributes to refined product prices, if refiners on the U.S. Gulf coast are forced to cut run rates due to the production of refined product inventory in PADD3, it will begin to weigh on crude oil prices,” ING analysts wrote in a note on Wednesday.
Colonial Pipeline has said it hopes to restart most of the network by this weekend.
Meanwhile, oil prices were supported by the Organization of the Petroleum Exporting Countries (OPEC)’s recent outlook, which predicts a strong recovery in global oil demand in 2021, with greater impact than expected with the growth of China and the United States. Coronavirus crisis in India.
OPEC said demand is expected to increase to 5.95 million ppm this year, unchanged from last month’s forecast. However, due to rising COVID-19 infections in India, its demand for the second quarter fell short of 300,000 BPD.
U.S. Petroleum Institute Group data for the week of May 7 Crude oil stocks were down 2.5 million barrels, slightly lower than expected, according to two market sources.
The loss came just before a colonial pipeline struck a cyberattack last Friday, forcing more than 2.5 million barrels of fuel a day to shut off the pipeline.