WATCH THE VIDEO HERE The oil market was up on Wednesday after US government data showed a mixed outcome in inventories data as Brent appreciated by 22 cents or 0.31 per cent to $70.78 a barrel and the US West Texas Intermediate (WTI) crude gained 26 cents or 0.39 per cent to trade at $67.16 per barrel. Data from the US Energy Information Administration (EIA) yesterday revealed that US crude stocks rose by 1.7 million barrels last week to 437 million barrels. On Tuesday, the American Petroleum Institute (API) reported a build of 4.593 million barrels in US crude oil inventories amid a strong gasoline draw. For total motor gasoline, the EIA estimated that inventories decreased by 500,000 barrels for the week to March 14, with production averaging 9.6 million barrels daily, in contrast to a large inventory decrease of 5.7 million barrels for the previous week and an average daily production of 9.6 million barrels daily. For middle distillates, the EIA estimated another inventory decrease, this time of 2.8 million barrels, with production increasing to an average of 4.6 million barrels daily versus an inventory dip of 1.6 million barrels in the week prior, when production stood at an average 4.5 million barrels daily. Distillate inventories are now 6 per cent below the five-year average for this time of year. Meanwhile, the Federal Reserve’s decision to hold interest rates steady capped gains. The US central bamk held rates steady at the 4.25 per cent -4.50 per cent range but signaled it could reducing borrowing costs by half a percentage point by the end of this year in the context of slowing economic growth and a downturn in inflation. In the Middle East, Israel resumed ground operations in the central and southern Gaza Strip after President Donald Trump vowed to continue his country’s assault on Yemen’s Houthis. He said he would hold Iran responsible for any attacks carried out by the group that has disrupted shipping in the Red Sea. Investors also watched Ukraine ceasefire talks as Russia agreed to President Trump’s proposal that the two countries would temporarily stop attacking each other’s energy infrastructure. Analysts say this increases chances for peace and eventually for Russian oil to re-enter global markets. Despite this, Russia and Ukraine accused each other of violating a new agreement to refrain from attacks on energy targets, hours after it was agreed. Also, US tariffs on Canada, Mexico and China have raised fears of recession, and worries of slower energy demand weighed on oil prices.
Oil Market Soars Amid Mixed US Inventories Data
