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Crude oil market extended gains on imminent SPR replenishmentsThe short-term outlook for crude prices seems to be on the climb as the rise in oil consumption during the summer and production cuts by OPEC will apply some upward pressure on the crude market |
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International benchmarks for crude continued their upward trajectory on Tuesday, 9 May 2023, countering more than a 2% drop witnessed earlier in the session as the US government plans to rebuild the nation’s emergency oil reserve while the demand is expected to be stronger this summer.
Brent crude went up 43 cents or 0.6% to settle at $77.44/barrel while US West Texas Intermediate climbed 55 cents or 0.8% concluding at $73.71/barrel.
The Biden administration is looking repurchase oil to fill up the Strategic Petroleum Reserve late this year after conducting a 180 million barrels sales last year, recording the largest ever sale from the stockpile since 1983.
The short-term outlook for crude prices seems to be on the climb as the rise in oil consumption during the summer and production cuts by OPEC will apply some upward pressure on the crude market according to data presented by the EIA Short-Term Energy Outlook.
