Crude Futures Rise as US Stockpiles Drop

By HY Markets Forex Blog

Futures for crude climbed during the Asian trading session on Wednesday, rising for a second day after the weekly industry report from the American Petroleum Institute (API) showed that crude stockpiles in the US unexpectedly dropped in the last week.

Futures for the North American West Texas Intermediate (WTI) for June delivery increased by 0.62% to $100.12 a barrel on the New York Mercantile Exchange at the time of writing. While the European Brent crude gained 0.22% higher to %107.29 a barrel on the ICE Futures Europe exchange at the same time.

US Crude Supplies

Reports from the industry-fund American Petroleum Institute (API) showed that crude inventories in the US fell by 1.8 million barrels to 389.8 million in the week ending May2. Analysts were expecting to see a rise of 1.4 million barrels.

The US Energy Information Administration (EIA) is expected to release a report later in the day and expected to show a rise in supplies by 1.25 million barrels in the last week to approximately 400.6 million, according to market analysts’.

Ukraine

Over the weekend, the crises in Ukraine escalated, as Ukraine’s Interior Ministry forces were sent to drive out militants and release hostages, according to Minister Arsen Avakov.  The crises in Odessa left 46 dead.

Oil traders are concerned after Russia said it will reduce its natural gas supplies to Ukraine in June if there is no payment received this month, which could also weigh on the energy supplies to the European Union.

 

 

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