Oil cut the decline with stock-dwindling
Oil prices on the benchmark marks on Thursday recovered part of the losses after the release of the US Ministry of Energy data, which showed a decline in the country’s oil reserves in the fourth consecutive week.
Brent’s April futures on the London ICE Futures exchange at 20:06 is $64.3 per barrel, a decline of $0.04 (0.06%) at the close of the previous session.
The price of the WTI Petroleum Futures as of March at the New York Commodity Exchange (NYMEX) electronic auction by this time is $61.03 per barrel, which is $0.11 (0.18%) below the market closing level on Wednesday.
Commercial oil reserves in the US declined by 7.26 million barrels last week, according to a weekly report by the Department of Energy. The inventory of gasoline increased by 672,000 barrels. Commercial stocks of distillates decreased by 3.42 million barrels.
Experts interviewed by Bloomberg expected a 2.15 million barrels of crude oil, an increase of 1.48 million barrels of gasoline, and a 1.55 million barrel drop in distillates.
Analysts interviewed by S&P Global Platts expected Department of Energy data to show a 3.4 million barrel drop in US oil reserves. They also projected an increase of 2.2 million barrels in petrol stocks and a reduction of 2.2 million barrels in distillates.
Meanwhile, power problems in some American states are escalating into a global oil crisis, wrote Bloomberg. Oil production in the US declined by more than 4 million barrels per day (about 40%).
"The market underestimates the decline in oil production in Texas from the weather," says Trafigura Group oil trading co-driver Ben Lakok.
In addition, the largest oil refineries in the United States suspended operations. Refinery volumes have been reduced by at least 3 million b/s. Traders send millions of barrels of diesel fuel across the Atlantic to the US, which is a potential incentive for the European refinery industry.