Economy

Oil jumps in the big draw on crude oil inventories

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Crude oil prices rose further today after the Energy Information Administration mentioned Withdrawal of 6.1 million barrels of oil stocks for the week ending December 25.

The previous day, the American Petroleum Institute also helped boost prices by estimating that crude inventories fell by 4.785 million barrels for the same week.

Last week, the Energy Information Administration estimated a slight decrease in inventory, up to 600,000 barrels, which nonetheless helped keep prices on the rise as it coincided with positive vaccine updates that dealers linked to an expected improvement in demand next year.

even in News Vaccination in the US is going much slower than expected, with just over a million people vaccinated as of December 23, compared to the 20 million planned for December, and this has not affected the rise in oil prices. Perhaps this was due to the congressional approval last week of a pandemic stimulus bill that many expect will boost both consumer spending and oil demand.

The Energy Information Administration report is now likely to intensify that rally. The authority also reported that gasoline inventories were withdrawn by 1.2 million barrels for the last full week of December, compared to a decrease of 1.1 million barrels in the previous week. Gasoline production averaged 9.2 million barrels per day last week, compared with 8.8 million barrels per day the week before.

For distillate fuels, the Energy Information Administration reported a stockpile increase of 3.1 million barrels for the week ending December 25, with an average production of 4.6 million barrels per day. This compares to a decrease in inventory of 2.3 million barrels in the previous week, and an average production of 4.6 million barrels per day.

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Refineries processed 14.3 million barrels per day of crude oil last week, compared to 14 million barrels per day in the previous week, and are operating at 79.4 percent of capacity, compared with 78 percent in the previous week.

The report notes that despite significant inventory drawdowns recently, there is still a long way to go before oil and fuel demand improves more strongly. There was concern, too News From the OPEC + camp this week: Deputy Prime Minister Alexander Novak said Russia would defend another production increase at the January meeting of an expanded cartel as prices were within the optimal range for now.

Written by Irina Slav for Oilprice.com

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