Crude oil prices rose today after the Energy Information Administration reported a 6.6 million barrel reduction in crude oil stock for the week through February 5.
The report came a day after the American Petroleum Institute depressed oil traders, reporting a considerable increase in gasoline stocks, dashing hopes for a rapid recovery in fuel demand.
Analysts had expected the EIA to record an increase in crude oil inventories by 1.34 million barrels.
A week earlier, the authority had estimated a crude oil stock of 1 million barrels.
In gasoline, the EIA reported an inventory increase of 4.3 million barrels in the reporting period, against a substantial increase of 4.5 million barrels reported the previous week.
Average gasoline production was 8.7 million bpd last week, compared to 8.4 million bpd the week before.
In medium spirits, the EIA reported a stock draw of 1.7 million barrels for the week through February 5, with an average production of 4.7 million barrels per day.
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This compares to no change in inventories a week earlier, leaving them about 8% higher than the five-year seasonal average. Production in the last week of January averaged 4.6 million bpd.
The EIA earlier this week revised upward its price projections for both Brent oil and West Texas Intermediate, saying it now expects this year’s average to be $ 53.20 and $ 50.21 a barrel, respectively. Benchmarks would rise even more, albeit modestly in 2022, according to the authority.
Brent and WTI are already trading above the expected average for the year, driven by Covid-19 vaccinations and a tighter offer, with some hedge fund analysts and managers hoping prices will rise well before the end of this year, with the number mentioned ranging from $ 70-80 to over $ 100, the latter seen as possible next year.
Brent crude was trading at $ 61.10 a barrel at the time of writing, and West Texas Intermediate changed hands at $ 58.24 a barrel.
By Irina Slav for Oilprice.com
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