Both Brent and WTI futures contracts are above $70. According to the data, crude oil inventories in the U.S. increased by 5.437 million barrels, above expectations of 3.903 million barrels. It is hoped that the vaccination rate will contribute to the recovery of the economy and increase demand for more fuel.
Brent futures are up 0.80% to $74.40 by 16:30PM ET.
WTI futures are up 0.85% to $71.31.
Investors turn their attention to the weekly report on crude oil inventories in the US. Analysts had forecast a decline of 3.5 million barrels in U.S. crude oil inventories and 2 million barrels in gasoline inventories. However, it remains to be seen what the US Energy Information Administration (EIA) will report today.
In addition, increasing the vaccination rate of COVID-19 vaccine could relieve the economy from more than a three-month decline in global oil demand due to the delta-variant epidemic and restrictive measures.
The effects of Hurricane Ida have hit the U.S. Gulf Coast, and production of about 39.7% of crude oil and about 48% of natural gas remains suspended.
Meanwhile, Tropical Storm Nicholas hit the Gulf Coast of Mexico, Texas and Louisiana yesterday. Widespread rain, power outages and storm surge were reported. However, the Texas refinery continues to operate as usual.
China will hold its first auction for the sale of strategic oil reserves on September 24. Approximately 7.4 million barrels of crude oil will be auctioned.
The Spot Market is Open
Wednesday, September 15, 2021