Crude Oil Advances Following Surprise Drop in U.S. Crude Oil Inventories

Crude oil futures closed higher Wednesday (Feb. 9) after U.S. crude inventories unexpectedly fell last week. Investors continue to keep an eye on the talks on the nuclear agreement with Iran.

  • WTI crude futures were up 30 cents, or 0.3%, at $89.66 a barrel.
  • BRENT crude futures were up 77 cents, or 0.9%, at $91.55 a barrel.

Crude oil futures are recovering after the EIA reported a 4.8 million barrel drop in U.S. crude inventories last week. Analysts had previously forecast a slight increase in oil inventory.

The EIA data is consistent with API data showing that U.S. crude oil inventories fell by 2 million barrels last week.

Crude oil inventories in Kuching Oklahoma, the delivery point for U.S. crude oil futures, declined by 2.8 million barrels.

Gasoline inventories fell by 1.6 million barrels, and distillate inventories, including heating oil and diesel, fell by 900,000 barrels last week.

Investors are closely following progress in talks on the Iran nuclear deal, which could pave the way for Iran to return to global oil exports.

The United States indirectly joined the talks after former President Donald Trump announced his withdrawal from the talks in 2018.

Iran, however, refuses to talk directly with the U.S. During the negotiations, Iran did, however, demand that the United States lift all sanctions. It also wants guarantees that no sanctions will be imposed on Iran in the future. Representatives of the major economies, however, see Iran as being in a position to lower its demands in order to get a deal.

The Spot Market is Open

Thursday, February 10, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
10.35

89.60

-0.06

-0.7%

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