Mild gains on crude – ‘Wipe out’ losses after US stocks

Despite the pressure on oil prices at the beginning of the day, which pushed it even below $ 100 a barrel, crude oil recovered and returned again above this psychological level after the announcement of US stocks.

The fuel came under pressure early Wednesday as growing, widespread lockdowns in China as the country struggled to curb the spread of coronavirus outbreaks in various parts of the country intensified fears of a significant slowdown in the Chinese economy and a deterioration in supply chains, raising concerns about a possible undermining of the global economic recovery.

Fears fueled by Russia’s ongoing war in Ukraine, which has led to a spike in energy prices and rising inflationary pressures, pushing central banks to be more aggressive in tackling inflation at the risk of reducing economic activity. .

However, following the announcement by the Energy Information Administration (EIA) of data on US energy stocks, black gold prices gradually reduced their losses and finally managed to close higher.

Although U.S. crude stockpiles rose 700,000 barrels last week, beating analysts’ estimates of a 600,000-barrel increase, the corresponding stocks of gasoline and refined products fell sharply.

In particular, according to EIA data, US gasoline inventories fell by 1.6 million barrels last week, while analysts forecast an increase of 100,000 barrels, while refined product inventories also fell by 1.4 million barrels, far more than estimates for a reduction of just 100,000 barrels.

West Texas Intermediate crude traded up 32 cents, or 0.3 percent, at $ 102.02 a barrel on the New York Mercantile Exchange.

Correspondingly, Brent crude, which is also a global benchmark, strengthened by 33 cents and closed the day at $ 105.32 a barrel, having fallen earlier to $ 103.27.