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NEW YORK – US oil prices extended gains yesterday on lower-than-expected US inflation and supportive weekly oil inventory data, reported Xinhua.
The West Texas Intermediate for May delivery rose US$1.73 (RM7.62), or 2.12%, to settle at US$83.26 a barrel on the New York Mercantile Exchange. Brent crude for June delivery increased US$1.72, or 2.01%, to settle at US$87.33 a barrel on the London ICE Futures Exchange.
US consumer price index for March recorded 0.1% of month-on-month increase, lower than market consensus forecast of 0.3% and 0.4% of expansion in the previous month, according to data issued yesterday morning.
The lower-than-expected inflation fuelled market optimism on oil demand and triggered a sharp growth of oil prices.
US commercial oil inventories for the week ending April 7 increased 0.6 million barrels from the previous week while motor gasoline and distillate fuel inventories in the period decreased by 0.3 million barrels and 0.6 million barrels week on week, respectively, according to data issued by the U.S. Energy Information Administration (EIA) on Wednesday.
Crude prices are rallying after a moderating inflation report was followed by an EIA report that highlighted tightness at Cushing and strong gasoline demand, said Edward Moya, senior market analyst at Oanda, a supplier of online multi-asset trading services.
Moreover, the Joe Biden administration intends to refill the US Strategic Petroleum Reserve soon, according to US Energy Secretary Jennifer Granholm.
The rally in crude really stands out yesterday and oil looks like it could be breaking out here, according to Moya. – Bernama-Xinhua, April 13, 2023