© Reuters.
Investing.com – US inventories data recorded huge declines that were more than expected, and interacted with the news, as they declined during these moments of trading on Wednesday. And the Energy Information Administration reported that the strategic reserves of crude oil fell to the lowest level since November 1983. The US President, Joe Biden, had promised to refill the strategic reserves as the oil price fell below $ 70 a barrel.
Data has now been issued to record a huge decrease of more than 3.7 million barrels, while expectations were hovering around a decrease of only 2.3 million barrels.
The US Energy Administration information data revealed a decrease in oil inventories by 3.739 million barrels, compared to expectations for a decrease of 2.329 thousand barrels, while it recorded a decline in the week before last by 7.489 million barrels.
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OPEC decision
Fitch, the global credit rating agency, expects that OPEC + yesterday’s decision to cut oil production by 1.66 million barrels per day will cause an increase in the short term, and warned that this may lead to a supply deficit in the oil market during the second half of this year.
The agency stated that the possibility of a deficit comes as a result of expectations of an increase in oil demand by 2 million barrels per day during 2023, with the reopening of China – which will account for about half of the growth in demand – and the gradual return of activity within the People’s Republic, according to estimates by the US Energy Information Administration.
Fitch added that it still sees an average price of $85 per barrel during this year, to decline after that starting next year, but indicated its forecast now shows the possibility of greater upward pressure on oil prices in the short term.
oil now
Benchmark crude futures recorded a decline of about 1%, to record 84 per barrel.
The price of West Texas Intermediate crude fell by 1.05%, at $79.8 a barrel.
