Crude oil shows surprise rise as per API data

Crude oil shows surprise rise as per API data

API which is the petroleum institute of America had made an estimation on Wednesday a surprise build of inventory when it comes to crude oil of 1.57 million barrels in a week which ended on the 17th of January in comparison to the expectations of the analyst of a draw of 1.009 million barrels in the inventory

In the last week, the build in the crude oil inventories had been 1.1 million barrels as per the API data. There is an estimate however that the draw is going to be at a level of 2.5 million barrels in the week. Oil prices had been down earlier during the day prior to the data released in the afternoon in spite of the continuous unrest in Iraq which was rich in oil and an oil production which was near complete disruption of oil in Libya, as there are the fears of economic slowdown again taking effect. At this time it is not the trade dispute but the coronavirus which has been feared to be as deadly like SARS in the year 2003 and may affect the travel in the region and the fears have escalated after there had been a confirmation of a case in United States.

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There was a build in the crude oil inventories in the week of 4.5 million barrels reported by the API for the week which ended on the 17th of January in gasoline. This build had been more than the expectations of the analyst who expected it to be 3.090 million barrels but it turned out to be 3.2 million barrels.

There was an increase in inventories for distillate too by 3.5 million barrels a week.

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