North Sea Brent for August delivery gained 2.49% to $123.58.
Crude oil prices rose after the release of the weekly report of oil reserves in the United States.
The US commercial crude oil stocks increased last week, according to figures published on Tuesday by the US Energy Information Agency (EIA), when the market expected a new and marked decline. But the demand for petroleum products increased.
In the week ending June 3, crude stockpiles rose 2.1 million barrels, when analysts had expected a contraction of 2.5 million barrels to 416.8 million.
At the same time, strategic reserves fell 7.3 million barrels to their lowest level in 35 years. According to Matt Smith, an analyst at Kplerthis is a record decline in one week.
Since last year, the Joe Biden administration has been using strategic reserves to try to ease gasoline prices, without much success so far.
In one year, strategic reserves fell 100 million barrels, to their lowest level since 1987.
combined, US reserves fell 5.2 million barrels.
Despite the rise in prices, the demand for oil products in the United States grew 2.3% in relation to the average of the previous four weeks, at the beginning of the summer season.
Gasoline stocks fell by 800,000 barrels last week. Naphtha demand reached 9.2 million barrels per day for the first time this year.
“Even at the prices American motorists are paying, demand for gasoline remains unaffected,” said analyst John Kilduff of Again Capital, “and that puts the industry under pressure.”
“At the current rate of consumption, we are very far from the peak (in prices) because China has not yet recovered” after several weeks of confinement, Emirati Energy Minister Suhail al-Mazrouei warned at a conference in Jordan on Wednesday. .
The leader pointed out that the total production of OPEC members and their allies within OPEC + is currently 2.6 million barrels per day below the objectives that they set for themselves.
“It’s a lot,” he acknowledged.
Source: Ambito
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