Higher oil prices supported by declining U.S. crude and fuel stocks
Al-Anbat -
Seham Qasem
Oil prices rose in early Asian trade on Wednesday after data from the sector showed a significant drop in crude oil inventories before the government’s statements.
Brent Crude rose 30 cents or 0.37% to $81.07 per barrel by 04:05 GMT while U.S West Texas Intermediate crude increased 38 cents or 0.49% to $77.45 per barrel.
Market sources reported citing U.S. Petroleum Institute figures on Tuesday that the US Crude inventories fell about 6.1 million barrels in the week ending April 21 and analysts had expected crude stocks to fall by about 1.5 million barrels citing Reuters.
The sources added that gasoline stocks also declined last week while distillate stocks increased and the U.S. government is due to announce its inventory data on Wednesday.
Crude oil prices fell more than 2% at the adjustment on Tuesday after the U.S. consumer confidence fell to 9 months lows in April and this is one of the smarter fears of a recession.
First Republic Bank announced on Monday that its deposits had fallen by more than $100 billion and this raised fears of a possible banking crisis.
Investors expressed concern that the expected interest rate increases by central banks fighting inflation could slow economic growth and hurt energy demand in the United States, Britain, and the European Union.
The Federal Reserve ( US Central Bank), Bank of England, and the European Central Bank are expected to rise interest rates in their next meetings and the U.S. Central Bank meets on May 2 and 3.
