Global oil prices rose by 5% on May 11 immediately after the US Department of Energy published data on a decrease in its production and a fall in gasoline inventories, Report informs referring to the auction data.
The price of July futures for Brent crude rose by 5.05% to $107.63 per barrel, June futures for WTI - by 5.65% to $105.4. Prior to the publication of statistics, oil rose in price by 4.2% and 4.9%, respectively.
According to the US Department of Energy, oil production in the country for the week to May 6 decreased by 100,000 barrels per day, to 11.8 million barrels of oil per day. Gasoline inventories for the week decreased more than expected - by 3.6 million barrels instead of falling by 1.6 million.
At the same time, commercial oil reserves in the country increased by 8.5 million barrels over the week, to 424.2 million barrels. Experts, on the contrary, expected a decline of 0.5 million barrels.
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Oil quotes rose on Wednesday morning after falling a day earlier, which was caused by traders' concerns about global economic growth and the outbreak of a new wave of coronavirus in China, Report informs.
The fall in oil contracts was also caused by the rise in the price of the US dollar, the dynamics of which makes it less profitable to buy oil for traders using other currencies.
Thus, July futures of Brent rose by $2.19 (2.14%) on the London ICE Futures exchange, to $104.65 per barrel. On Tuesday, Brent fell $3.48 (3.3%) to $102.46 per barrel.
By that time, June WTI futures had risen in price in e-trading on the New York Mercantile Exchange (NYMEX) by $2.12 (2.13%), to $101.88 per barrel. During the previous session, the price fell by $3.33 (3.2%) to $99.76 per barrel.
The inability of the European Union to quickly agree on a plan to impose an embargo on Russian oil supplies also affected oil prices, according to ING analyst Warren Patterson. It seems that the latest package of sanctions will need to be softened in order to be approved by all EU members, the expert wrote. Hungary asked for more time to give up Russian oil.
As Western media reported, the EU may agree that Hungary and several other Eastern European countries will stop buying Russian oil by 2024, and not by the end of this year.
Traders are analyzing information from the American Petroleum Institute (API) on the weekly dynamics of US energy stocks. The country's oil inventories rose by 1.6 million barrels in the week ending May 6, according to API data. The US Department of Energy will release its inventory data later on Wednesday. Experts polled by The Wall Street Journal predict a weekly decrease in oil reserves in the United States by 300,000 barrels.