Oil prices up as U.S. fuel inventory goes down

6 Jan 2023 , 09:27 AM

Oil prices rose around 1% on Friday, extending gains from the previous trading session, after data showed lower fuel inventories as a result of a winter storm that hit the United States at the year end.

Brent crude futures were up 79 cents, or 1%, to $79.48 a barrel at 0203 GMT, after closing up 85 cents at $78.69 the day before.

West Texas Intermediate crude futures in the United States were also up 80 cents, or 1.1%, to $74.47 per barrel. In the previous session, they settled 83 cents higher at $73.67.

The US Energy Information Administration (EIA) reported on Thursday that distillate inventories, which include diesel and heating oil, fell more than expected in the week ending December 30. They fell 1.4 million barrels, compared to expectations of a 396,000-barrel drop.

Meanwhile, according to EIA data, gasoline stocks in the United States fell 346,000 barrels last week, falling short of analysts’ expectations of a 486,000-barrel drop.

While services activity in China contracted for the fourth consecutive month in December due to rising COVID infections, the rate of declines slowed while business confidence rose to a 17-month high.

For feedback and suggestions, write to us at [e-mail]