Oil prices are rising for the third consecutive session, while establishing new highs in 2016. Support for oil have oil supply disruptions in Nigeria, as well as statistics on US petroleum inventories.
Yesterday, the American Petroleum Institute (API) reported that US crude stocks in the previous week fell by 3,560 million barrels. Analysts had expected a decrease of 3.5 million barrels. Oil reserves in the country’s largest terminal in Cushing fell by 1.3 million barrels, gasoline inventories thus rose by 0.7 million barrels, while distillate stocks – by 0.270 million barrels.
Meanwhile, the US Department of Energy today announced that during the week 28 May – 3 June oil stocks fell by 3.2 million barrels to 532.5 million barrels. Experts predicted a decline of 2.7 million. Barrels. Oil reserves in Cushing terminal fell by 1.4 million barrels to 65.6 million barrels. Gasoline stocks rose by 1 million barrels to 239.6 million barrels. Analysts had expected stocks will fall 500,000 barrels. Distillate stocks rose by 1.8 million barrels to 151.4 million barrels. Analysts had forecast a drop to 300,000 barrels. The utilization of refining capacity increased by 1.1% to 90.9%. Analysts suggested that the figure will rise to 0.6%. Meanwhile, oil production in the US rose to 8.745 million barrels per day versus 8.735 million barrels per day in the previous week
Increase in oil prices also contribute to the data, which showed that China imported crude oil by the end of May rose to its highest level in more than six years. Against this background, increased hopes that energy demand in China is beginning to stabilize.
Another rise in oil prices factor is the weakening of the dollar against a background of reducing the likelihood that the Fed will raise rates in the near future. Today futures on interest rates Fed indicate that the probability of a rate hike of 2% in June. The chances of an increase in rates are estimated at 25% in July.
Also today, the International Energy Agency (IEA) said he expects growth in oil prices. “We expect that oil prices will rise. By the end of this year and in 2017 we will see a greater restoring the balance in the oil market, “- said the head of the IEA’s Fatih Birol.
WTI for delivery in July rose to $50.86 a barrel. Brent for July rose to $52.16 a barrel.
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