FX.co ★ Oil trading higher despite rise in US crude inventories

Yesterday, after the EIA report showed a 9.4 million weekly rise in US crude stockpiles, oil prices slightly declined.

Currently, US oil reserves stand at 421.8 million barrels. For this time of this year, this is about 13% below the five-year average.

According to the American Petroleum Institute, the unexpected inventory build failed to move prices significantly lower, with both Brent crude and West Texas Intermediate trading above $100.

In gasoline stocks, the EIA reported a decrease of 3.6 million barrels for last week compared to an estimated decline of 2 million barrels for the previous week.

Gasoline production averaged 9.5 million barrels a day in the week to April 8, compared to 9.1 million barrels a day in the previous week.

According to the EIA, middle distillates fell by 2.9 million barrels in a week which is a worrisome sign for the transport sector due to especially tight supply.

Middle distillate production averaged 4.7 million barrels per day compared to 5 million barrels per day a week earlier.

Oil prices recouped some of their recent losses this week as the United States and the International Energy Agency were planning to release a total of 240 million barrels from strategic reserves to keep oil prices down over the next six months.

However, OPEC has rejected EU calls for increased oil production to cap prices. Because the EU is discussing a potential oil embargo against Russia. With the EU currently discussing a potential oil embargo on Russia, OPEC's head, Mohammed Barkindo said this could lead to the loss of more than 7 million barrels of oil daily and that it would be "nearly impossible" to replace all these barrels.