WTI Crude Oil Rises as EIA Reports Sharp Fall in US Gasoline Stockpiles

WTI crude oil is trading bullish into Thursday amid rising expectations for rapid economic recovery due to the vaccine rollout even as fuel

WTI Crude Oil Rises as EIA Reports Sharp Fall in US Gasoline Stockpiles

WTI crude oil is trading bullish into Thursday amid rising expectations for rapid economic recovery due to the vaccine rollout even as fuel stockpiles in the US declined over the past week. At the time of writing, WTI crude oil is trading at around $64.97 per barrel.

The EIA report which released during the previous session revealed that gasoline inventories in the US declined by 11.9 million barrels over the past week, raising hopes for improvement in fuel demand across the world’s largest energy consumer. Economists had forecast a drop by 3.5 million barrels instead, and the larger than expected drop supported gains in crude oil.

Crude oil prices were also boosted by President Biden’s $1.9 trillion worth of stimulus programs getting an approval by the House of Representatives. Increased stimulus measures raises hopes for further increase in fuel consumption by Americans in the near future.

However, due to the Texas deep freeze keeping oil refiners in the region shut, crude inventories increased by 13.8 million barrels to 498.4 million barrels, against the forecast for an increase by 816k barrels instead. The surprisingly high build in crude inventories capped gains in oil prices.

 

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers