Oil prices today show low volatility, remaining close to highs, while market participants are waiting for the U.S. Department of Energy report on crude oil inventories and oil production levels to assess the U.S. demand, the world’s largest consumer.
On October, 24, The American Petroleum Institute reported preliminary data based on the survey. According to the report the United States crude oil inventories increased by 519,000 barrels for the week ending October 20. However, the experts expect a decline in crude oil inventories of 2.5 million barrels. Besides, gasoline inventories are expected to see a draw down of 5.8 million barrels along with a decline in distillate inventories of 4.9 million barrels.
Brent benchmark contracts went up by 0.3 % and now are trading at $ 58.49 a barrel. WTI benchmark contracts went down by 0.2% and now are $ 52.39 a barrel. Yesterday both benchmarks went up; Brent increased by 1.7% and WTI – by 1.1%. The positive dynamics is related to the fact that Saudi Arabia announced its willingness to continue working to restore supply and demand balance. Moreover, the market is supported by the analysts’ expectations of oil Production Cut Deal extension by OPEC (without Livia and Nigeria) and the largest world oil producers not belonging to the union until next March.
The U.S. Energy Information Administration report on oil inventories and oil production level is due to be released at 14.30 UTC.