FX.co ★ Oil supply in the US continues to decline

Oil prices rose, immediately after the US Energy Information Administration (EIA) reported an 8 million barrel decrease in crude oil inventories. Earlier, supply was up by 9.4 million barrels, but that also did not have a significant impact on prices.

The American Petroleum Institute estimated on Tuesday that there will be a decline of around 4.5 million barrels, but the report of the EIA yesterday showed that US reserves stood at 413.7 million barrels, which for this time of year is 15% below the five-year average.

One of the reasons was the force majeure at Libyan export terminals and the closure of two major fields, including Sharara, the country's largest oilfield.

Another reason was the revised forecast of the International Monetary Fund, which is one percentage point lower than the previous estimate.

In terms of gas inventories, the EIA reported that there was a 800,000 bbl drop from last week's output of 9.8 million bpd. Earlier, supply already decreased by 3.6 million, recording an average daily output of 9.5 million barrels.

For middle distillates, the EIA estimated a 2.7 million barrels-week inventory shortfall, with average production of 4.8 million barrels per day. Earlier, there was a 2.9 million bpd decrease in supply amid an average daily production of 4.7 million bpd.

At the time of writing, Brent is trading at $107, while WTI is trading at $102.20.