Friday, January 27, 2023

Crude oil rises due to lack of reserves amid winter storm in America

by Shadia Nasralla

LondonDec 22 – Oil prices rose for the fourth day in a row on Thursday, as US crude, heating diesel and jet fuel stocks declined as winter storms hit the country.

* Brent crude futures were up 74 cents, or 0.9%, at $82.94 by 0911. gmtThe gain increased by about 2.7% from the previous session.

* US West Texas Intermediate crude futures (WTI), which rose to its highest level since Dec. 5, was up 81 cents, or 1%, at $79.10 a barrel.

* Both benchmark contracts rose on Wednesday after government data showed US crude inventories fell more than analysts expected, falling 5.89 million barrels in the week ended Dec 16.

* Distillate stocks, which include heating diesel and aviation fuel, also fell against expectations for growth, according to Stephen Brennock, an analyst at the tubdescribed it as “a report from EIA On the list highly favorable for the prices”.

* The inventory decline comes at a time when demand for heating diesel will skyrocket due to the arrival of a strong winter storm in the United States, with sub-zero winds in South Texas and record low temperatures in Florida and eastern states.

* Jet fuel consumption is also expected to increase with the holiday boom in travel, although demand for the transportation fuel could decrease if the storm halts travel.

* However, concerns stemming from a jump in demand covidFears of further global recession in COVID-19 China may cap oil futures.

* China may have trouble keeping an accurate count of infections covid a senior World Health Organization official said on Wednesday amid concern over a lack of data coming from the country as it experiences a large increase in cases.

Nation World News Desk
Nation World News Desk
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