Crude Oil prices increase as US crude stock declines

27 Jul 2022 , 08:40 AM

Early on Wednesday in Asian trading, oil prices increased as industry data revealed a larger-than-anticipated reduction in U.S. crude stockpiles.

By 67 cents or 0.7%, U.S. West Texas Intermediate (WTI) crude increased to $95.65 a barrel. The price of Brent crude futures increased by 33 cents, or 0.3%, to $104.73 a barrel.

The American Petroleum Institute, an industry body, said that US oil stocks dropped by 4 million barrels last week after settlement on Tuesday. In a Reuters poll, economists predicted a fall of 1 million barrels, so this is four times that amount.

According to API data, gasoline inventories decreased by 1.1 million barrels compared to forecasts for an increase of 3.5 million barrels. Later on Wednesday, the Energy Information Administration of the US government releases its weekly oil report.

Expectations of a tighter gas supply in Europe starting on Wednesday after Russia’s Gazprom announced it will reduce flows via the Nord Stream 1 pipeline to Germany to a fifth of capacity helped push prices higher.

After reaching compromise agreements to cap cutbacks for some countries, the European Union’s member states approved a feeble emergency demand-reduction plan on Tuesday.