High Oil Prices Thanks to Economic Outlook and a Decline in Inventories

Oil prices rose Thursday, March 11th, as the distribution of vaccines to prevent Covid-19 boosted expectations for economic recovery, and US fuel stocks fell sharply, but a rise in crude stocks after a storm in Texas last month limited the gains.

Brent crude futures for May delivery rose 20 cents, or 0.3%, to $68.10, while U.S. West Texas Intermediate crude for April delivery reached $64.56 a barrel, up 21 cents, or 0.3%.

The US Energy Information Administration said on Wednesday that gasoline inventories fell 11.9 million barrels to 231.6 million barrels in the week ending on the fifth of March, while analysts in a Reuters poll expected them to decline by 3.5 million barrels.

However, crude inventories increased 13.8 million barrels over the week ending on the fifth of March, recording 498.4 million barrels, compared with analysts’ expectations in a Reuters poll for an increase of 816 thousand barrels, as the repercussions of a winter storm in mid-February continued on the oil sector in the United States. Which disrupted refining operations and stopped production in Texas.

Globally, analysts and companies that track ship traffic said that stocks remained abundant, with stocks of crude oil rising last week in onshore and offshore centers.