Drop in U.S. Crude Oil Inventories Causes Crude Oil Price to Rise Slightly

Crude oil futures closed higher on Wednesday (April 20) after the U.S. reported a drop in crude inventories last week. However, trading conditions were choppy as investors remain concerned about the slowdown in the economy and oil demand.

  • WTI crude futures were up 19 cents, or 0.2%, at $102.75 a barrel.
  • BRENT crude futures were down 45 cents, or 0.4%, at $106.80 a barrel.

WTI rose after the EIA reported that U.S. crude oil inventories fell by 8.0 million barrels last week. In contrast to analysts’ expectations, who had expected an increase of 2.2 million barrels.

The American Petroleum Institute (API), an association of the U.S. oil industry, had previously reported that U.S. crude oil inventories fell by 4.5 million barrels last week.

In addition, oil prices were also driven by reports that OPEC and OPEC+ produced below their targets in March. In addition, Russian oil production could be further curtailed by sanctions imposed by the United States and the West.

Markets were under pressure after the International Monetary Fund (IMF) said Russia’s military invasion of Ukraine would have a “far-reaching impact on the global economy”. The IMF expects the global economy to grow by just 3.6% in 2022 and 2023, down from January’s figures that suggested growth of 4.4% in 2022 and 3.8% in 2023.

The Spot Market is Open

Thursday, April 21, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
11.35

103.04

+0.85

0.83%

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