Crude oil closes up $1 as U.S. crude inventories fell more than expected

Crude oil futures closed higher Wednesday (Aug. 17) after U.S. crude inventories fell more than expected last week.

  • WTI crude futures were up $1.58, or 1.8%, to close at $88.11 a barrel.
  • BRENT crude futures were up $1.31, or 1.42%, at $93.65 a barrel.

Oil futures rose after the U.S. Energy Information Administration (EIA) announced that U.S. crude oil inventories fell by 7.1 million barrels last week. Gasoline inventories fell by 4.6 million barrels, more than analysts’ expectations of a 1.7 million barrel drop.

However, oil prices came under pressure during the day. According to reports, Russia is starting to ramp up oil production after Asian buyers purchased more oil from Russia. This is expected to give Russia a 38% increase in oil export revenues this year.

Investors are still waiting for a nuclear agreement to be negotiated between Iran and the West. Analysts at Goldman Sachs believe that a resumption of the nuclear agreement between Iran, the European Union (EU) and the United States will not happen in the near future. And even if all parties can reach an agreement, Iranian oil will probably not be able to hit the market until next year.

Oil prices have fallen sharply in recent days on expectations that negotiations on the Iran nuclear deal will move forward, which could allow Iran to resume oil exports on the world market.

The Spot Market is Open

Thursday, August 18, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
11.20

88.08

-0.03

-0.03%

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