Oil Retreated From Its Highest Level Since Omicron

The statements of US Federal Reserve Chairman Jerome Powell came with a state of concern in the markets about the lack of supply resulting from the current events in Libya and Kazakhstan, giving a solid boost for oil prices. Powell stressed that the fed uses all tools to manage the economy during the coronavirus pandemic.

There is also the possibility of raising interest rates slower than expected, which enhances the demand for oil in the short term. At the same time, the US Energy Information Administration raised its forecast for oil demand yesterday; It is expected that total US demand would rise 840 thousand barrels of oil in 2022, compared to the previous expectations of an increase of 700,000 barrels per day.

On the other hand, the data of the American Petroleum Institute showed weaker oil demand, especially fuel, as crude oil inventories decreased than expected and there was a greater than expected increase in gasoline and distillate inventories. This data also showed a rise in gasoline inventories by 10.9 million barrels of oil, which is much greater than analysts’ expectations of an increase of 2.4 million barrels.

Distillate stocks, which include diesel and heating oil, rose by 3 million barrels, compared to expectations of an increase of only 1.8 million barrels. These increases in oil inventories hurt the market.

The prices of a barrel of oil fell this morning, as the price of US West Texas Intermediate crude reached $81.20 a barrel, and at the same time, Brent crude contracts also decreased by about 0.12%, to record $83.62 a barrel.