Crude prices surge amid falling oil inventories
On Thursday, in Asia trade crude prices surged, following a sudden sag in American crude inventories.
By April 1, American crude oil supplies dipped by 4.9 million barrels, as the EIA reported on Wednesday. However, just a week before oil stockpiles reached their highest level for about 80 years. Financial experts surveyed by the WSJ had expected crude stock piles to surge by approximately 3.3 million barrels.
The inventory drawdown came because of falling imports as well as a soar in refinery activity. Last week, refineries demonstrated a 91.4% capacity, a bit higher compared to last week’s outcome of 90.4%.
The decline doesn’t necessarily suggest the world market is currently rebalancing. Many financial experts are assured that exactly a lack of available barrels should be blamed for this decline.
In New York May delivery crude futures traded at $38.15, a 1.1% surge, while June delivery Brent futures leapt 0.9% to $40.14.
Some experts consider waiting for an output freeze to be nonsense, as it would be the worst news for the industry.