Oil prices make up for their losses as storage capacity fills at a slower pace


US crude prices rose today, Wednesday, and reduced part of their losses this week after the increase in US stocks came less than expected, as well as expectations of better demand with European countries and US cities heading to ease public isolation measures due to the Corona virus.</p><div data-qa-component="item-story" data-rc-highlight="story" dir="rtl">

    US West Texas Intermediate crude futures rose 12.6 percent, or $ 1.56, to $ 13.91 a barrel, trimming part of its 27 percent losses in the first two days of this week.

    Earlier in the session, US crude jumped more than 15 percent to its highest level at $ 14.40 a barrel.

    Brent crude futures rose 3.1 percent, or 64 cents, to $ 21.10 a barrel, in addition to yesterday's gains of 2.3 percent.

    The American Petroleum Institute data showed that American crude stocks rose by ten million barrels per day to 510 million barrels in the week ending April 24, compared to analysts' expectations for an increase of 10.6 million barrels.

    The market will receive another reading of US stocks when the US Energy Information Administration issues its weekly report today.

    With the storage capacity rapidly swelling, production cuts by US shale oil producers estimated by consulting firm Restad Energy at 300,000 bpd in May and June will slow the process. The United States is currently the world's largest oil producer.


Please enter your comment!
Please enter your name here