Crude prices climbed on Thursday after the report from the US which revealed the demand for distillates dropped due to the freezing weather.
Futures for the WTI for March delivery rose 0.31% higher to $97.69 per barrel on the New York Mercantile Exchange at the time of writing. At the same futures for the Brent crude for the March settlement came in 0.14% higher at $106.40 per barrel on the ICE Futures Europe exchange. The European benchmark crude was at a premium of $8.80 to WTI on the ICE exchange.
Reports from the US Energy Information Administration (EIA) revealed that the US stockpiles climbed at a slower pace last week. Stockpiles rose by 440,000 barrels, compared to the previous figures of 2.27 million barrels in the previous week. Gasoline inventories added 505,000 barrels, compared to the gain of 1.48 million barrels forecasted by analysts.
Crude – Distillates Demand
Meanwhile, the US distillate supplies including heating oil and diesel fell by 2.36 million barrels to 113.8 million. The demand in distillates dropped due to the freezing weather and snow in the Northern eastern region of the US. The US is the world’s biggest oil consumer.
Report from the Institute for Supply Management (ISM) revealed the US services sector expanded to 54.0 in January, rising from the previous reading of 53.0 seen in December and compared to analysts forecast of 53.7.
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