Oil Climbs as U.S Crude Stockpile Sees a Decline

Oil prices went up on Wednesday, adding to their gains from the previous session after U.S crude stocks data showed an unexpected fall last week. The fall was attributed to the increase in demand as covid restrictions were eased across the nation.

Brent crude future were recorded at $85.22 a barrel by 0732 GMT after rising 1.6% on Tuesday. U.S West Texas Intermediate crude future also climbed up to $84.31 a barrel. With the global oil inventories becoming limited in the past months, both oil benchmarks peaked to record highs on Wednesday. New data provided by the American Petroleum Institute also stressed upon the supply issues which have strained oil.

Avtar Sandu, senior commodities manager at Phillip Futures said, “Supplies are tight with OPEC sticking to its guns. Growing air travel is also supporting oil demand. I still see a bull charging on; it might be taking a break now, but if there’s any small spark, it might just continue its march.”

Inventory data from the U.S Energy Information Administration EIA is still yet to be released on Wednesday which will confirm the decline in crude stocks. On the other hand, Vitol Groups CEO Russell Hardy stated on Tuesday that the demand for oil is gradually moving towards pre-pandemic levels.