Oil grows on signs that glut’s going down
During Wednesday’s Asian trade oil soared powered by prospect of a dropping glut.
In New York, June delivery sweet, light oil futures were worth $44.56, demonstrating a 1.2% leap, while Brent crude ICE futures showed the same surge at $46.30 per barrel.
Overnight, both commodity benchmarks showed the most impressive peaks since November 10 and managed to surge more during the post-settlement trading session right after last week the American Petroleum Institute posted American crude inventories surged by approximately 1.1 million barrels.
This everlasting glut in the physical market has kept a lid on crude prices for about two years. Notwithstanding the recent surge, the number one commodity is still lower than $100. Any indication of decreasing supply will power risk-taking sentiment and bring crude prices higher.
A recent survey of fourteen financial experts conducted by The Wall Street Journal expects oil stocks to have surged by approximately 1.7 million barrels.
Gasoline stockpiles are expected to drop by about 1.2 million barrels. As for stocks of distillates, including diesel and heating oil, are supposed to edged down by approximately 100,000 barrels.