As a result of the low levels of diesel supplies in the US before winter, investors were able to ignore the greater stocks anticipated for crude oil and gasoline, and oil prices jumped by nearly $1 today, Thursday.
Brent crude futures for December delivery rose $ 1. 22 to $ 93. 67 a barrel, an increase of 1. 3 percent, by 11:29 am EST (1529 GMT), after its decline earlier in the day, and the US West Texas Intermediate crude rose $ 1. 15, 1. 3 percent to $ 88. 42 a barrel.
According to Phil Flynn, an analyst at Price Futures Group in Chicago, “the most concerning component of the Energy Information Administration report is that distillation of stocks is substantially lower than the usual.” Winter is approaching.
In contrast to the short-term demand figures that were impacted by the storm, the market considers the big picture, he continued.
Energy Information Administration said that the distillation products that include diesel and heating oil have declined 4.
9 million barrels in the week ending October 7 to 106. 1 million barrels, the lowest level since May, as opposed to forecasts calling for a drop of two million barrels.
This enabled investors to surpass a sudden rise in gasoline stockpiles of two million barrels and a bigger height in crude stockpiles of ten million barrels.
The International Energy Agency issued a warning that the world economy would enter a recession, and the report was released amid worries that high prices will reduce fuel demand.
Due to the low US diesel stock levels before winter, oil prices are rising.
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