US oil reserves rose unexpectedly instead of falling estimates last week, mainly due to a record decline in the country’s strategic reserves, although refinery inflows have been high since January 2020.
In particular, according to the US authority, the EIA, in the week ended June 3, the country’s oil reserves increased by 2 million barrels to 416.8 million barrels.
It is noted that the average estimate of analysts in a Reuters survey predicted a decrease in inventories by 1.9 million barrels.
At the same time, refined crude increased by 354 thousand barrels according to the EIA.
However, US strategic reserves fell by a record 7.3 million barrels during the same period, falling to 519.3 million barrels, the lowest level since March 1987.
In this context, world oil prices not only were not pushed by the unexpected increase in US stocks, but even intensified their profits.
In particular, Brent delivery in August sees its price rise by 1.5% or $ 1.8 and is now moving to $ 122.39 the barrel
Similarly, the US WTI delivery in July is also rising 1.5% or $ 1.84 and trades at $ 121.25 the barrel.
As Tony Hendrick, an energy market analyst at CHS Hedging, told Reuters, “the increase in trade stocks is mainly due to the decline in strategic stocks, which, however, have continued to decline aggressively and this is the expectation for the coming months.”
Source: Capital
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