Crude oil futures closed higher on Wednesday (Jan. 5) after the U.S. reported a sixth consecutive week of declining crude oil inventories. The markets also received support from the decision of OPEC+ which continues to believe in strong demand.
- WTI crude futures were up 86 cents, or 1.1%, at $77.85 a barrel.
- BRENT crude futures were up 80 cents, or 1%, at $80.80 a barrel.
Crude oil futures rose after the U.S. Energy Information Administration (EIA) announced that U.S. crude oil inventories fell by 2.1 million barrels last week. This is a six-week consecutive decline and indicates that U.S. oil demand remains strong.
The report coincides with previously released data from the American Petroleum Institute (API), which reported that crude oil inventories in the U.S. fell by 6.4 million barrels last week.
Crude oil futures were also helped by OPEC+’s decision to stick to its original agreement to increase production by 400,000 barrels/day in February. This is expected to remain until April 2022.
The Spot Market is Open
Thursday, January 6, 2022