Washington: Crude jumped to the highest this year after government data showed the biggest decline in U.S. crude stockpiles since July. Futures advanced as much as 1 percent on Wednesday in New York. Nationwide crude inventories tumbled by 9.59 million barrels last week, according to data from the Energy Information Administration.
Domestic crude exports climbed to above 3 million barrels a day, while refiners also increased demand for crude. Meanwhile, gasoline and distillate supplies also declined.
West Texas Intermediate crude for April delivery rose 31 cents to $59.34 a barrel at 10:38 a.m. on the New York Mercantile Exchange, after touching $59.60 a barrel, the highest level since November.
Brent for May delivery added 28 cents to $67.89 on the London-based ICE Futures Europe exchange. The global benchmark traded at a $8.41 premium to WTI.
Why Markets Care About crude oil inventories (Crude Stocks, Crude Levels)
Crude Oil Inventories (Crude Stocks, Crude Levels) measures change in the number of barrels of crude oil held in inventory by commercial firms during the past week
It is released released weekly, 4 days after the week ends by the Energy Information Administration (EIA)
There is no consistent effect as there are both inflationary and growth implications. While this is a US indicator, it most affects the loonie due to Canada’s sizable energy sector.
Crude oil inventories (crude stocks, crude levels) is the primary gauge of supply and demand imbalances in the market, which can lead to changes in production levels and price volatility.