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The American Petroleum Institute (API) reported on Tuesday an accumulation of crude oil inventories of 3.8 million barrels for the week ending November 20.
Analysts had expected an inventory build of just 127,000 barrels, and for the short price due to the favorable news about the covid-10 vaccine in the last week or so, it probably means curtains.
In the previous week, the API reported an increase in oil inventories of 4,174 million barrels, after analysts predicted a 1.95 million barrel build for the week.
Oil prices surged Tuesday afternoon before API data was released on another round of positive vaccine news. While the threat of lower oil demand still looms in markets at large, consecutive announcements from pharmaceutical companies, including Moderna and AstraZeneca, are part of US President Trump’s Warp Speed operation. The results show a high degree of efficacy for multiple candidate vaccines.
In the run-up to Tuesday’s data release at 2:45 pm EDT, WTI was up $ 1.82 (+ 4.23%) to $ 44.88, up about $ 4 a barrel over the week. The Brent crude oil benchmark was up $ 1.74 at that time (+ 3.78%) to $ 47.80, up about $ 4.50 a barrel over the week.
US oil production increased for the week ending November 13 in 10.9 million bpd, according to the Energy Information Administration, 2.2 million bpd less than the all-time high of 13.1 million bpd reached in March.
API reported a gasoline stock buildup of 1.3 million barrels of gasoline for the week ending November 20, up from 256,000 barrels the previous week. Analysts expected a 614,000 barrels build for the week.
Stocks of spirits fell by 1.8 million barrels during the week, compared to last week’s extraction of 5.024 million barrels, while Cushing stocks fell by 1.4 million barrels.
At 4:43 pm EDT, the WTI benchmark was trading at $ 44.69, while Brent crude was trading at $ 47.76.
By Julianne Geiger for Oil “
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