Oil prices started the week on the increase due to demand hopes following US data showing a decline in crude oil stockpiles in the world’s largest oil-consuming country and China’s demand increase after Covid-19.
International benchmark Brent crude traded at $76.66 per barrel at 9.51 a.m. local time (0651 GMT), a 1.42% increase from the closing price of $79.54 a barrel in the previous trading session.
The American benchmark West Texas Intermediate (WTI) traded at $76.09 per barrel, down 0.13% from the previous session’s close of $75.99 per barrel.
Recent data released by the US Energy Information Administration showed US oil stockpiles dropped by 5.1 million barrels to 460.9 million barrels during the week ending April 21.
Although stocks fell short of the American Petroleum Institute’s projection of a 6.08 million barrel draw, the data nonetheless showed an increase in US oil demand to put upward pressure on prices.
This development came as a welcome relief to global markets, which are plagued by demand concerns ahead of the Fed meeting to be held in the first week of May.
Also, Russian President Vladimir Putin excluded ‘friendly countries’ from the ban on Russian oil sales imposed in response to the price caps.
According to the decree, which is stated to have entered into force as of today, “friendly countries” were excluded from the scope of the oil and oil supply ban to countries participating in Russia’s ceiling price application.
