Feb 21, 2024 11:16 p.m.

Oil climbed 2% on tighter supply outlook

US crude inventories witnessed a large weekly drawdown of 12.5 million barrels against analysts’ expectations of 800,000 barrels climb in the week ending 19 May.

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International benchmarks for crude oil climbed 2% on Wednesday, 24 May 2023 as reports from the EIA suggest an unexpected reduction in US commercial crude inventories inducing supply worries while the idea of another OPEC+ production cut remains.

Brent crude futures went up $1.52 or 2%, currently at $78.36/barrel while West Texas Intermediate climbed $1.43 or 2%, now at $74.34/barrel.

US crude inventories witnessed a large weekly drawdown of 12.5 million barrels against analysts’ expectations of 800,000 barrels climb in the week ending 19 May. Gasoline stocks fell by 2.1 million barrels during the week while distillate stockpiles dipped by 600,000 barrels, the EIA said.

In other news, the prospect of further OPEC+ output cuts is steadily growing with a meeting on the horizon, as Saudi recently cautioned short sellers expecting oil prices to plunge.