Crude oil prices decreased on Wednesday and remain close to the four-week low, which was reached after a surprising rise in kd reserves in the United States. The US light WTI crude fell by 0.18% to 49.47 USD per barrel, while the European benchmark Brent oil wiped 0.36% of its value to 52.38 USD per barrel.
On Tuesday evening, the US Petroleum Institute published its regular weekly report that oil stocks rose 897,000 barrels in the week ending April 21. Petrol reserves rose by 4.4 million barrels, while the expectations were for declining. The distilled products dropped less than expected by 36,000 barrels too.
Later today will be released the official government data from the US Energy Information Administration. There are often significant discrepancies between the calculations in both reports. If the administration confirms the growth of reserves, it would be the first increase after two consecutive weeks of declines.
Crude oil is under pressure for last week’s sell-offs because of fears of continued recovery of shale yields in the United States. It is shale output that can undermine OPEC’s efforts to balance demand and supply.
OPEC will meet on May 25 to decide whether to extend the agreement to reduce yields beyond the end of June.