Weekly Crude Oil Review: WTI Crude Spikes Above $90 Per Barrel On Buyoant Demand

12 Feb 2022 , 02:45 PM

WTI Crude oil futures moved up further, breaking well above $90 per barrel to hit a fresh seven year high as demand remained firm and markets eyed escalating US-Russia conflict owing to the Ukraine issue. MCX Crude oil futures also spiked above Rs 6900 per barrel mark. The Energy Information Administration or EIA estimated that global oil inventories fell further in January and that commercial inventories in the OECD ended the month at 2.68 billion barrels, which is the lowest level since mid-2014. Oil prices have also risen as result of heightened market concerns about the possibility of oil supply disruptions, notably related to tensions regarding Ukraine, paired with receding market concerns that the Omicron variant of COVID-19 will have widespread effects on oil consumption. The EIA reported a crude oil inventory draw of 4.8 million barrels for the week to February 4. The draw estimated by the EIA compared with an inventory decline of 1 million barrels for the previous week. Inventories remain below the seasonal five-year average supporting higher oil prices.The International Energy Agency (IEA) noted in its latest monthly report that the global oil supply rose by 560 kb/d to 98.7 mb/d in January, but the uptrend was slowed by a chronic OPEC+ under-performance versus targets that has taken 300 mb of oil off the market since the start of 2021.

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