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Oil Spikes On Major Inventory Draw

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The day after the American Petroleum Institute raised oil prices by 7.55 million barrels last week, according to the Energy Database, the energy database reported a 1

2.8 million barrel increase in crude oil inventories, pushing up prices further , This is the most significant inventory decline for at least a year.

Yesterday, Brent crude oil reached the highest price level in almost four weeks, according to API's report, as the oil market danced again with hostilities between tensions in the Middle East. Washington and Tehran continue to rise after President Trump punishes sanctions against high-ranking Iranian government officials, including the colonel Leader of the country, Ali Khamenei, had announced week as sentiment reverses in hours as soon as the EIA publishes the official stock figures. This week, however, it caused a significant price increase as analysts had expected a much lower rebate of about 2.5 million barrels. compared to 1.7 million barrels the previous week. Production stood at 10.5 million bpd, a week earlier at an average of 10.4 million bpd.

For distillate fuels, the agency saw a decline in inventories of 2.4 million barrels last week, compared to a small decline of 600,000 barrels a week earlier. The average production of distillate fuels was 5.3 million bpd last week, compared to 5.4 million bpd a week earlier.

At the time of writing, Brent traded crude at $ 65.22 a barrel, West Texas Intermediate at $ 59.17 a barrel. both higher than yesterday thanks to the API estimate and worsening situation in the US and Iran. The next big event – unforeseen – will be the OPEC production meeting next week. It would distract some attention from Middle Eastern policy, but undoubtedly also significantly increase price volatility.

By Irina Slav for Oilprice.com

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