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Oil is replenished after falling reserves in the US

Oil is replenished after falling reserves in the US

Oil prices rebounded today after a larger-than-expected drop in US commercial crude oil reserves.

A barrel of North Sea Brent for February delivery closed in London up 0.24% at $ 73.88.

While in New York a barrel of West Texas Intermediate (WTI) for January gained 0.19% to 70.87 dollars.

Prices began the day lower, but recovered after the publication of the report of reserves in the United States by the US Energy Information Agency (EIA).

Commercial crude oil reserves in the United States fell much more than the market expected last week.

In the week ending December 10, crude stocks fell 4.6 million barrels (mb) to settle at 428.3 mb, when analysts expected a drop of just 1.7 mb.

This surprise drop in reserves can be attributed in large part to a strong increase in demand., which grew more than 3.3 mb per day (mbd) over the previous week, to 23.1 mbd in the United States. Exports also increased.

When a rise was expected, gasoline reserves also fell by 700,000 barrels.

As in previous weeks, strategic reserves continued to decline, by 2 million barrels in this case, to 598.9 mb.

"I was surprised"said Andy Lipow of the consulting firm Lipow Oil Associates. "In particular because in addition to commercial reserves, strategic reserves fell 2 mb. In total, between crude oil and refined products, we are almost at ten million barrels" descent, he argued.

Whether demand continues to rise in the coming weeks will depend on market sentiment on covid, according to Lipow, as well as "of confinement measures, teleworking or eventual travel cancellations", summarized.

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