Oil prices slipped on yesterday, but still holding near one-month high after futures jumped in the previous as the International Energy Agency, (IEA) and others upgraded forecasts for oil demand as major economies recover from the pandemic.
Brent crude was down by 21 cents, or 0.3 per cent at $66.37 a barrel after gaining 4.6 per cent on Wednesday and closing at the highest since March 17.
U.S. West Texas Intermediate futures dropped 25 cents, or 0.4 per cent to $62.9 a barrel, having risen 4.9 per cent in the previous session.
U.S. crude inventories were down by 5.9 million barrels last week, the Energy Information Administration, EIA, said on Wednesday, more than double analysts’ expectations for a 2.9 million-barrel decline. East Coast crude stocks hit a record low.
“We see robust stock draws even after factoring in bearish risks as refinery runs are set to rise sharply in the coming months,” Citi Research analysts said in a note.
Gasoline supplied to the market last week, an indicator of U.S. consumption of the fuel, increased to 8.9 million barrels per day (bpd), the highest since August, the EIA report said.
Analysts are reacting to major decision by the Organization of Petroleum Exporting Countries, OPEC, to restrain production to ease glut in global oil markets.
