US gasoline stocks fell 482,000 barrels last week to 219.7 million barrels, the US Energy Information Administration said on Wednesday. In the United States, consumption typically peaks at the start of the summer driving season.
see photosIn the United States, consumption typically peaks at the start of the summer driving season.
Oil prices rose on Friday on the prospect of a tight market due to rising gasoline consumption in the United States in the summer and the prospect of an EU sanctions on Russian oil. Brent crude was up 58 cents, or 0.5%, at $117.98 at 1545 GMT, while US West Texas Intermediate (WTI) crude rose 14 cents, or 0.1%, to $114.23 a barrel. “Benefiting from the renewed decline in US oil inventories, oil prices hit their highest level since late March,” said UBS analyst Giovanni Stanovo.
US gasoline stocks fell 482,000 barrels last week to 219.7 million barrels, the US Energy Information Administration said on Wednesday. In the United States, consumption typically peaks at the start of the summer driving season.
“A US driving season and strong travel demand should help (prices). With increased demand outpacing supply, the oil market is likely to remain short on supply. So, we look to crude oil prices,” Stonovo said. Remain positive in your outlook.”
Both benchmark crude contracts were also supported as the European Commission continued to seek unanimous support from all 27 EU member states for its proposed new sanctions against Russia, with Hungary being a stumbling block.
Officials said EU countries are negotiating a deal on Russian oil sanctions that would halt shipment deliveries but delay sanctions on oil delivered by the pipeline in a win over Hungary and other landlocked member states.
Hungary’s resistance to oil sanctions – and the reluctance of a handful of other countries – has stalled the implementation of a sixth package of sanctions by the 27-member EU against Russia over its invasion of Ukraine.
“We believe a sharp contraction in Russian oil exports could trigger a 1980s-style oil crisis and propel Brent beyond $150 a barrel,” Bank of America said in a note.
Officials said an agreement could be reached by envoys of EU governments in Brussels on Sunday so that their leaders can endorse it at a summit on May 30-31.
Meanwhile, Russian President Vladimir Putin told Austrian Chancellor Karl Nehmer on Friday that Moscow would meet its natural gas distribution commitments.
“He also raised the topic (and said) that all deliveries will be completed in full,” Nehmer said.
Oil prices rose after the 1979 Iranian Revolution and a protracted war between Iran and Iraq (1980–88), although a global recession soon hampered fuel demand and oil prices fell back.
So far this year, the prices have gone up by about 50 per cent.
OPEC and allies, a grouping known as OPEC+, are set to stick to last year’s oil production deal and raise the July production target by 432,000 barrels per day at their June 2 meeting, six OPEC+ sources said. told Reuters. Thus OPEC+ members will defy Western calls for faster growth to cushion rising prices.
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