Oil prices Spike as EIA confirms inventory drawing

The Energy Management Administration reported a fall in crude oil revenues of 3.9 million barrels a week until March 8, against a 7.1 million barrel a week earlier, with the sum slightly above the average of this time of 449.1 million barrels. .

Authorities said refineries were crude at an average daily rate of 16 million barrels, unchanged from a week earlier. Petrol production averaged 9.7 million bpd last week, from 9.9 million bpd a week earlier, and distillate fuel production was almost unchanged from 4.9 million bpd last week.

Petrol stocks, reported MER, fell by 4.6 million barrels in the seven days to March 8, compared to a 4.2 million barrel decline last week. The distillate fuel stock got a modest 400,000 barrels, having fallen by 2.4 million barrels in the last week of February.

Crude oil prices have been higher today in the back of declining Venezuelan and Iranian production, the pressures of US sanctions, and also thanks to an update from Saudi Arabia that it plans to continue reducing production more than it agreed in December in last year to support prices.

The update came despite a comment from India's oil minister during a meeting with his Saudi counterpart that prices were already climbing higher than India, one of the world's largest importer, was comfortable with. Related: Is a crisis threatening Canadian oil?

However, the continued growth in US crude oil production has served as a mainstream oil gain on the bullish news. EIA, in its latest short-term Energy Outlook, said it expected this to be at a record high level, though it changed its actual figure for 201[ads1]9 by 110,000 bpd to 12.3 million bpd. Next year, the EIA expects US crude oil production to hit 13 million bpd.

Concerns about global economic growth also continued to weigh on prices, as it would curb the demand of some of the largest importers of the product.

At Writing Time, Brent crude traded at USD 67.29 per barrel, with WTI at US $ 57.85 per barrel.

By Irina Slav for

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