Oil increases after major decline in crude stocks
On Wednesday, oil prices increased following a huge drop in the US crude stocks, along with the oil industry waiting for upcoming step from a meeting later in the same day on the future perspective of output declines by OPEC as well as its allies. According to the recent US crude stocks figures, Brent crude futures were increased to 22 cents, or 0.5 percent, almost at $43.12 per barrel, and US West Texas Intermediate (WTI) crude futures gained to 23 cents, or 0.6 percent to nearly $40.52.
As per the information released by the industry group called the American Petroleum Institute, indicating a recovery on fuel demand despite the COVID-19 pandemic, the US crude stocks dropped by almost 8.3 million barrels in the week to 10th of July, crunching the expectations of analysts for a drop of 2.1 million barrels. Whereas, the official numbers from the US Department of Energy’s Energy Information Administration are released on Wednesday.
According to the analysts, API numbers issued overnight, have offered some assistance to the industry in early morning trading on Wednesday. The market will be excited to observe if major cuts will be captured for an extra month, or whether the group will continue with the original plan, and begin trimming drops. Most numbers indicate that it will be better, with more concentration on compliance as well as compensatory declines.