Oil prices rose sharply yesterday, as Brent per barrel settled above $40 due to reported small crude oil inventory draw of 483,000 barrels for the week ending May 29.
Although analysts had predicted an inventory build of 3.038 million barrels, the lower draw also pushed Nigeria’s Brass River crude grade to $40.18, Qua Iboe settled at $40.18, while Bonny Light was trading at $37.89 per barrel in the early hours of yesterday.
American Petroleum Institute (API), had previously estimated a build in crude oil inventories of 8.731 million barrels, EIA’s estimates were according to Oilprice more muted, with the as the EIA reported last week that the inventories had climbed by 7.9 million barrels.
The API reported a build of 1.706 million barrels of gasoline for week ending May 29, compared to last week’s 1.120-barrel build. This week’s draw compares to analyst expectations for a 1.0 million-barrel build for the week.