Crude oil inventories in the US registered a surprising fall of 11.5 million barrels last week, says CommerzBank raw material analyst Carsten Fritsch.
The price of the wti is approaching the price of oil Brent
“This was the largest weekly fall in inventories in almost a year. The reduction was driven by a significant fall in net imports of 1.8 million barrels per day, since imports fell and exports increased. This is remarkable because the WTI price discount against Brent has been significantly reduced, which means that American light oil has become less competitive in terms of price.”
“At the beginning of the week, the difference was only 2.5 per barrel, the lowest level of this year. Therefore, it is questionable if exports may maintain their high level. Reduction in inventories is also likely to be partially reversed.”
“The inventories of crude oil in the US are currently 10% below the average of 5 years, which indicates a adjusted supply situation in the US in Cushing, the delivery point for the WTI, the deviation is up to 40%, which means that the WTI price is approaching the price of Brent oil.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
