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EIA Report Surprises and Japan Back to Subsidizing Fossil Fuels

The BRENT price continues to march towards the $90 mark as it rises to $89.76 per barrel in the evening in Asia at 10:35 PM (GMT+7). This means that the BRENT price has already risen by 13.66% this year. If the BRENT price continues to rise at this pace, the target of $105 per barrel issued by Goldman Sachs analysts could be reached far earlier in the second half of the year.

Likewise, the WTI crude oil continues to rise and stands in the evening at $87.10 per barrel. WTI crude oil has already risen 14.8% this year.

In response to the rise in gasoline prices, the Japanese government has decided to introduce a temporary gasoline price subsidy. Accordingly, oil traders and importers will receive a subsidy of 3.4 yen, which is equivalent to about $0.03 per liter of gasoline. This is intended to provide relief at the gas stations, as the price of gasoline has risen by 23% compared to last year, reaching a price not seen in 13 years. On average, the price of gasoline is said to have exceeded the ceiling of 170.2 yen ($1.488) per liter, which is why the subsidy is now in effect. This is to apply until the end of March.

Unexpected data was also reported from the U.S. The EIA has published its report for the crude oil inventory in the U.S. which shows that the inventories have increased in the last week by 2.377M barrels. This comes as a surprise, as analysts have expected a reduction of just under 800k barrels. The Cushing Crude Oil Inventories have meanwhile fallen by 1.823M barrels.

Meanwhile, Exxon Mobile (XOM) shares hit a new 52-week high today at $76. The oil giant’s stock has already gained 22.3% since the beginning of the year. Next week, the company will then present the quarterly figures for the last quarter.

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