NEW YORK – Oil prices climbed yesterday, boosted by supply tightness, reported Xinhua.
The West Texas Intermediate for May delivery rose US$1.40, or 1.92%, to settle at US$74.37 a barrel on the New York Mercantile Exchange. Brent crude for May delivery increased 99 cents, or 1.26%, to close at US$79.27 a barrel on the London ICE Futures Exchange.
The above market reactions came as market participants “stay focused on supply worries,” Vladimir Zernov, analyst with market information supplier FX Empire, said yesterday.
“Traders should note that Russia has cut production by 500,000 bpd in March, so the oil market is getting tighter, which is bullish for oil prices,” he said.
In addition, the US Energy Information Administration (EIA) reported Wednesday that the country’s commercial crude oil inventories decreased by 7.5 million barrels during the week ending March 24. That was the largest weekly fall for the year to date.
The EIA report also showed a fall of 2.9 million barrels in US motor gasoline inventories and a climb of 0.3 million barrels in distillate fuel stocks. – Bernama, March 31, 2023
