Oil Surges as Crude Oil Inventories Rise Less Than Expected
Prices of crude oil surged today, as investors reacted positively to the news that U.S. crude oil inventories increased less-than-expected last month.
Crude Oil Inventories
In the weekly report issued by the Energy Information Administration, official data showed on Wednesday that U.S. Crude Oil Inventories increased to a seasonally adjusted annual rate of 1.317M, down from the 3.880M recorded in the preceding month. This came as a welcome boost to the markets after analysts had been expecting U.S. Crude Oil Inventories to show an increase to 3.414M for last month.
Meanwhile, in a separate report issued by the US Energy Information Administration, official data revealed today showed that U.S. gasoline inventories declined at a less-than-expected rate in the last quarter. U.S. Gasoline Inventories dropped to a seasonally adjusted annual rate of -0.747M, far lower than the -4.526M recorded in the previous quarter. This came after analysts had been expecting U.S. Gasoline Inventories to decline -2.339M for the last quarter.
At time of writing, Crude Oil leaped over 4%, trading at $37.80 a barrel, a rise of $1.47. Brent Oil rose 3.20%, trading $39.90 a barrel. The rise in oil prices follows a mini-decline which followed weak Chinese data and concerns over Iranian production levels.
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