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Oil prices supported by decline in U.S. crude oil stocks

by Bunkerist
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US crude inventories fell more than analysts had expected, according to an industry report. Oil prices soared on Wednesday, with hopes stronger that fuel demand in the world’s largest economy could survive the coronavirus outbreak.

Brent crude LCOc1 was up 15 cents, or 0.3%, at $44.65 a barrel by 0206 GMT, after falling around 1% on Tuesday.

West Texas Intermediate (WTI) oil was up 9 cents, or 0.2%, at $41.70 a barrel, having dropped 0.8% in the previous session.

As crude oil demand outlook improves, oil prices soar.

In a statement released on Tuesday, it was said that US crude inventories fell by 4 million barrels last week, above analysts’ expectations of 2.9 million barrels. Official data will be released on Wednesday.

Meanwhile, the growing uncertainty in negotiations over a stimulus package to support recovery from the deep impact of the pandemic could put pressure on prices going forward.

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