Oil prices rise after industry data shows a drop in crude inventories

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Oil futures rose on Wednesday, finding support after an industry trade group reported a drop in US crude inventories ahead of official government data on domestic stocks. West Texas Intermediate crude for May delivery CL.1, + 1.05% CLK21, + 1.05% rose 50 cents, or 0.%, to $ 59.83 a barrel on the New York Mercantile Exchange. June Brent BRN00 crude, + 1.12% BRNM21, + 1.12%, the global benchmark, rose 61 cents, or 1%, to $ 63.35 a barrel on ICE Futures Europe.

The American Petroleum Institute reported Tuesday night that crude supplies from the United States fell 2.6 million barrels for the week ended April 2, according to sources. The data also showed that gasoline reserves increased by almost 4.6 million barrels, while distillate inventories increased by 2.8 million barrels. Meanwhile, crude stocks at the Cushing, Oklahoma, storage facility changed little, dropping 84,000 barrels for the week, sources said. The most closely watched inventory data from the Energy Information Administration will be released on Wednesday. The EIA is expected to show a drop in crude inventories of 700,000 barrels, according to IHS Markit. It also forecast inventory gains of 200,000 barrels of gasoline and 500,000 barrels of distillates. Oil has traded within a tight range for the past two and a half weeks, as traders weigh signs of a strengthened economic recovery in the United States against prolonged business and consumer lockdowns in the eurozone, said Fawad Razaqzada, analyst. ThinkMarkets Market Chart, on a note. Demand for oil should pick up as blockades are slowly lifted and more countries ease travel restrictions, while the launch of vaccines still promises the end of the pandemic, he said. However, the concern is that increased demand will be offset by increased oil supply, as the Organization of the Petroleum Exporting Countries and its allies, known as OPEC +, agreed last week to begin easing oil prices. restrictions on production, while indirect talks between the US and Iran could eventually see sanctions lifted against Tehran. See: What Iran’s Nuclear Talks Mean for Oil Prices “So, I can’t see oil prices rising any further. Brent has already struggled to stay above $ 70 and WTI could not stay above $ 65 for long, ”he wrote. “These will remain the key resistance levels going forward, and if prices go back up, I can’t see them staying above these levels for too long in 2021.”