Although US crude oil stocks have risen to a record high and revive a permanent anxiety due to weak demand, oil rebounded from earlier losses on Wednesday.
According to official data, crude oil stocks rose by 5.7 million barrels last week to 538.1 million barrels.
However, the demand for products has increased, although it was far below the levels of this period last year. Distilled stocks were higher, but the increase was lower than in previous weeks. The demand from the distilated products supports the market rather than crude oil.
Brent crude settled up 55 cents to $41.73 a barrel. U.S. West Texas Intermediate (WTI) rose 66 cents to $39.60 after falling more than 2% in the session.
The United States stated it bought 126,000 barrels of crude oil for its strategic reserve and supported the prices.
The inventory structuring exceeded analysts’ expectations.
Brent has more than doubled since it fell below the $ 16 which was the lowest in 21 years in April. However, some analysts think prices have increased too much, despite the continued pandemic’s news and its impact on the demand.
The Organization of the Petroleum Exporting Countries (OPEC), the group known as OPEC +, Russia and others, reduced about 10% of pre-pandemic demand by cutting 9.7 million barrels a day. OPEC + agreed on Saturday to extend the record supply cuts by the end of July.