Oil prices are rising after a two-day decline as an industry report showed U.S. stockpiles shrunk
further ahead of the summer driving season.
The price of West Texas Intermediate (WTI), the American standard, crude climbed above
$110 U.S. a barrel after losing 3% over the previous two trading sessions. Brent crude oil, the
international benchmark, gained 0.6% to $114.26 U.S. a barrel.
The American Petroleum Institute reported that oil inventories fell by 4.22 million barrels last
week. U.S. stockpiles are now at their lowest level for this time of the year since 2013.
At the same time, Saudi Arabia’s foreign minister said that the Kingdom has done what it could
for the oil market, adding that there was no shortfall of crude.
Saudi Foreign Minister Prince Faisal bin Farhan said “oil supply right now is relatively in
balance” during a panel session at the World Economic Forum being held this week in Davos,
Switzerland. “The kingdom has done what it can,” he added.
U.S. distillate inventories, a category that includes diesel fuel, fell by 949,000 barrels last week,
while crude oil stockpiles rose, the API said.
The U.S. is leading a co-ordinated release of global crude reserves to tame rising energy prices.
The Department of Energy made its latest announcement on the sale of strategic stockpiles,
offering as much as 40.1 million barrels of predominantly sour crude.
