Oil prices rose more than 2% today, Wednesday, supported by a sharp decline in US fuel stocks and speculation that OPEC + producers may decide not to increase production when they meet this week.
US gasoline stocks fell last week, the biggest drop on record, and refinery production fell to a record low, in the wake of freezing weather in Texas that disrupted production.
Gasoline stocks fell to 243.5 million barrels, according to the US Energy Information Administration, while distillate stocks fell, their biggest drop since 2003, to 143 million barrels.
“The drop is entirely due to the Texas storm,” said John Kilduff, a partner at Again Capital in New York. “The supply chain in Texas has completely frozen, causing a drawdown of inventories of refined products.”
Crude inventories rose by 21.6 million barrels, the largest recorded increase, to 484.6 million barrels, according to the Information Department. Gulf of Mexico to 40.9%, which is also the lowest level ever.
By 1611 GMT, Brent was up $ 1.30, equivalent to 2.1%, to $ 64 a barrel, and US West Texas Intermediate crude was up $ 1.55, or 2.6%, to record $ 61.30.
Prices had jumped earlier, after Reuters reported, citing 3 sources, that the OPEC + group, made up of the Organization of the Petroleum Exporting Countries and allies, including Russia, was considering extending production cuts until the end of next April, instead of increasing production.
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