Oil prices rose on Wednesday, January 10, continuing their rise the previous day after data showed that US crude inventories fell more than expected last week, but a larger-than-expected increase in gasoline and distillate inventories limited the gains.
Brent crude futures rose 29 cents, or 0.4%, to $77.88 per barrel by the hour, and US West Texas Intermediate crude futures rose 29 cents, or 0.4%, to $72.53 per barrel.
The two benchmarks rose about two percent yesterday, Tuesday, amid the Middle East crisis and the interruption of Libyan supplies.
Data from the American Petroleum Institute showed that US crude oil inventories decreased by 5.2 million barrels in the week ending January 5, 2024, compared to analysts’ estimates of an increase of 700 thousand barrels in a previously conducted Reuters poll.
However, gasoline inventories rose by 4.9 million barrels and distillates by 6.9 million, exceeding expectations for an increase of 2.5 million and 2.4 million.
Data from the Energy Information Administration, the statistical arm of the US Department of Energy, is scheduled to be released at 3:30 p.m. GMT on Wednesday.
Regarding supply, the Energy Information Administration said on Tuesday that US crude oil production will reach record levels over the next two years but will grow at a slower rate.
In the Middle East, US Secretary of State Anthony Blinken urged Israel on Tuesday to take “difficult decisions” to normalize relations with more of its neighbors, in a new call to facilitate the path to the establishment of a Palestinian state.
Investors are also trying to extract clues about when the Federal Reserve (the US central bank) might start cutting interest rates. Expectations have decreased that the bank may do so next March.
