Oil prices rose on Friday for the second consecutive session, despite data from the U.S. Department of Energy on a significant increase in oil inventories in the country.
April Brent crude futures on London’s ICE Futures exchange stood at $82.91 a barrel by 7:10 a.m. Friday, up $0.7 (0.85%) from the previous session’s close. Those contracts rose $1.61 (2%) to $82.21 a barrel on Thursday.
The price of WTI futures for April oil grew by $0.66 (0.88%) to $76.05 per barrel at electronic trades of the New York Mercantile Exchange (NYMEX) by that time. At the end of previous session the cost of contracts grew by $1.44 (2%) to $75.39 per barrel.
Commercial oil inventories in the United States rose 7.65 million barrels last week to 479.04 million barrels, the highest since May 2021, the nation’s Energy Department’s weekly report showed.
Stocks at the Cushing terminal, where NYMEX traded crude oil is stored, rose for the eighth straight week to their highest since June 2021.
Distillate stocks increased by 2.7 million barrels, while gasoline reserves unexpectedly declined by 1.86 million barrels.
The oil market has remained in a narrow price range – about $11 per barrel – since the beginning of 2023. On the one hand, it is supported by expectations of increased demand in China after the lifting of quarantine restrictions and fears of supply reduction in the market due to the reduction of Russian production. On the other hand, the market fears weakening of the American economy amid tightening of the monetary policy by the Federal Reserve System (FRS), notes Bloomberg.
“A stronger increase in business activity in China is needed for a solid rebound in oil prices,” notes Saxo Capital Markets analyst Charo Chanana.
