Home NewsCommodities News Oil rises on tight U.S. stocks as winter blast hits By Reuters

Oil rises on tight U.S. stocks as winter blast hits By Reuters

by WOOWinvest
0 comment
Oil rises on tight U.S. stocks as winter blast hits By Reuters

© Reuters. FILE PHOTO: Pumpjacks are seen during sunset at the Daqing oil field in Heilongjiang province, China August 22, 2019. Picture taken August 22, 2019. REUTERS/Stringer

By Shadia Nasralla

LONDON (Reuters) – Oil prices climbed for a fourth straight day and hit their highest in two and a half weeks on Thursday with , and jet fuel stocks growing tighter just as a wintry blast hits the United States.

futures gained $1.17, or 1.4%, to trade at $83.37 at 1235 GMT, extending gains of around 2.7% from the previous session.

US West Texas Intermediate (WTI) crude futures were up $1.11, or 1.4%, at $79.40 a barrel.

Both benchmark contracts jumped on Wednesday after government data showed US crude inventories fell by much more than analysts had expected, posting a drop of 5.89 million barrels for the week ending on Dec. 16. [EIA/S]

Distillate stocks, which include heating oil and jet fuel, also declined, going against expectations for a build, in what PVM analyst Stephen Brennock called “an overwhelmingly price-supportive stock report from the EIA”.

The falling stockpiles come as demand for heating oil is set to soar with a powerful winter storm hitting the United States, with sub-zero wind chills expected as far south as Texas and record-breaking lows forecast for Florida and eastern states.

Jet fuel consumption is also expected to pick up with a post-COVID boom in travel for the end-of-year holiday season, although transport fuel demand might be reduced if the storm keeps people from travelling.

Demand worries, however, stemming from China’s COVID-19 surge and fears of a global recession may keep oil futures in check.

China may be struggling to keep an accurate count of COVID infections as it experiences a big spike in cases, a senior World Health Organization official said on Wednesday, amid concerns about a lack of data from the country.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News


Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy