Crude oil futures closed above $82 a barrel on Wednesday (Jan. 12), responding to an unexpectedly sharp drop in U.S. crude inventories. This suggests that U.S. oil demand remains strong despite the COVID-19 virus.
- WTI crude futures were up $1.42, or 1.8%, at $82.64 a barrel.
- BRENT crude futures were up 95 cents, or 1.1%, at $84.67 a barrel.
Crude oil futures rose after the EIA (Energy Information Administration) reported a 4.6 million barrel drop in U.S. crude oil inventories last week. Crude oil inventories at Cushing, Oklahoma, the delivery point for U.S. crude oil futures, fell by 2.5 million barrels last week.
The EIA data is consistent with a previously released report from the American Petroleum Institute (API). The report said that U.S. crude oil inventories fell by 1.1 million barrels last week.
The EIA’s short-term outlook published this week was also positive. The EIA predicted a further increase in oil production in the U.S. for this and next year. In 2023, the highest U.S. oil production ever is to be reached with 12.4 million barrels per day.
The Spot Market is Open
Thursday, January 13, 2022