OIL prices rose on Wednesday as traders shrugged off the significant increase in the United States’ crude stockpiles, reported Xinhua. 

The West Texas Intermediate for February delivery gained US$2.29 (RM10.01), or 3.05%, to settle at US$77.41 a barrel on the New York Mercantile Exchange. Brent crude for March delivery added US$2.57, or 3.21%, to settle at US$82.67 a barrel on the London ICE Futures Exchange. 

The US Energy Information Administration (EIA) reported Wednesday that the country’s commercial crude oil inventories jumped by 19 million barrels during the week ending January 6. On average, analysts surveyed by S&P Global Commodity Insights had expected the report to show a decline of 500,000 million barrels in US crude supplies. 

While the number was bearish for the oil markets, traders seemed to focus more on the US strategic reserve, which fell to 1983 lows, according to the EIA. 

“The US will ultimately have to buy oil to refill reserves, which will provide support to oil markets,” Vladimir Zernov, market analyst with market information supplier FX Empire, said on Wednesday. 

Elsewhere, oil prices continued to garner support from expectations of higher demand in China amid the country’s efforts to optimise the epidemic response and reopen its economy. – Bernama, January 12, 2023.