Crude oil stockpiles fell more than expected last week, according to the latest government data. Crude inventories fell eight million barrels, against a forecast for a 2.1 million-barrel draw, according to the Energy Information Administration. Demand has been an issue, weighing on crude oil prices.
On Tuesday crude oil prices rallied, following reports that Russia—the OPEC+ producer that was insisting on a 500,000-bpd production increase in February—has agreed that there would not be another rise in the pact’s production next month.
On Monday crude oil prices touched multi-month highs on expectations that OPEC and allied producers may cap output at current levels in February as the coronavirus pandemic keeps worries about first-half demand elevated.
Crude oil prices rose today on the back of a weaker dollar, a decline in US inventories and Britain’s approval of a second Covid-19 vaccine, but both benchmark contracts remained on track for a decline of about 20% for the year.
On Monday crude oil pared some of its losses from earlier after U.S. President Donald Trump signed a $2.3 trillion coronavirus aid and spending package but lingering worries about near-term demand weighed on market sentiment.
On Wednesday crude oil prices continued to climb after the Energy Information Administration reported a crude oil inventory draw of 800,000 barrels for the week to November 20.
The West Texas Intermediate (WTI) Crude Oil market broke higher during the trading session, showing signs of strength as word got out that armed militants had attacked Libya’s National Oil Corporation headquarters in Tripoli.