MarketDeal24.Com – Oil prices rose as much as 1% on Wednesday after U.S. crude oil reserves fell far more than expected.
Brent crude (LCOc1) rose 48 cents, or 1.2%, to $41.75 a barrel after falling more than 1% on Tuesday, while US crude rose 54 cents, or 1.4%, to $39.81 a barrel, down 1.1% from the previous session.
U.S. crude oil and gasoline stocks fell more than expected last week, according to data released Tuesday by the American Petroleum Institute (API).
Crude oil fell 8.2 million barrels to 537 million barrels, contrary to analysts’ forecasts of 710,000 barrels.
Official inventory data from the U.S. government’s Energy Information Administration will be released Wednesday.
Meanwhile, a Reuters survey found that oil production fell 1.92 million bpd from May’s revised figures.
Analysts around the world say prices are likely to fall again later this year. Because of the coronavirus, the world is becoming more and more active with oil. In the meantime, fuel demand has fallen by about a third.
A Reuters poll with analysts indicated that oil prices would be around $40 a barrel this year and a possible recovery in the fourth quarter.