Oil prices jump $3.58 amid tight US oil reserves

West Texas Crude Oil Contract Delivered in May Trading on the NYMEX was up $3.58, or 3.4%, at $107.82 a barrel. Brent crude oil prices rose 2.9 percent to $113.35 a barrel.

The US Energy Information Administration (EIA) said that US crude inventories fell 3.4 million barrels last week. while analysts expected a decrease of 1.7 million barrels.

The American Petroleum Institute (API), a US oil industry group. previously disclosed that US crude inventories fell 3 million barrels last week.

EIA also revealed that Crude stocks at Cushing, Oklahoma, the delivery point for U.S. crude futures, fell 1 million barrels.

Gasoline inventories rose 800,000 barrels, compared with analysts’ expectations for a decrease of 1.9 million barrels.

In addition, refined oil stocks This includes heating oil and diesel, up 1.4 million barrels last week. Analysts expected a drop of 1.5 million barrels.

The market is keeping an eye on the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies. or OPEC Plus It is expected that OPEC Plus will still have a resolution to adhere to the original agreement. with a slight increase in oil production in May

In the past, OPEC Plus has increased oil production by only 400,000 barrels/day every month. Since August 2021, OPEC Plus also agreed last year to increase oil production by 432,000 barrels per day in May this year.

The United States and several other oil-importing nations have called for OPEC Plus to increase production more than it currently does. while oil prices rose above $139/barrel this month. This is the highest level since 2008 after Russia’s military invasion of Ukraine.

The source revealed that Saudi Arabia will continue to increase production according to the original resolution. because they do not want to signal conflict with Russia which is also a member of OPEC Plus