Oil prices rise moderately, receiving support from the weakening of the US dollar. Nevertheless, government data presented on the next increase in commercial oil inventories in the US, holding back further growth. "It seems that this is another statistics on stocks, helping to reduce prices, but the market took it well enough" - said the expert Ritterbusch & Associates Jim Ritterbusch.
US Department of Energy reported that in the week of 14-20 March crude oil reserves rose by 8.2 million barrels to 466.7 million barrels, while analysts' average forecast assumes an increase of 5.6 million barrels. Commercial US crude stocks remain at historical highs over the past 80 years. Oil reserves in Cushing terminal rose by 1.9 million barrels to 56.3 million barrels. This is a new historical high since April 2004. Gasoline inventories decreased by 2 million barrels to 233.4 million barrels, the lowest level this year. Distillate stocks fell by 34,000 barrels to 125.8 million barrels. Utilization rate of refining capacity increased by 0.9% to 89%. Analysts had expected that this figure will grow by 0.5%.
Recall, according to the American Petroleum Institute (API), US crude inventories last week rose by 4.8 million barrels, with growth forecast at 5.1 million barrels to a record level of 450 million barrels. Worries about rising inventories of oil in storage in the United States this month, putting pressure on prices. A steady increase in oil production in the United States against the backdrop of sluggish demand reinforces the view of the imminent exhaustion of oil storage capacity of some.
Rising oil prices also help previously reported by Germany, which pointed to the economic recovery in the eurozone. According to a survey published by the Ifo Institute in Germany, the index of business confidence in Germany strengthened the fifth consecutive month and reached 107.9 against 106.8 in February, exceeding the median forecast of economists, which was 107.4. Also, the expectations index managers of German companies in the near future, the monitored IFO, this month rose to 103.9 points from 102.5 points in February. Experts on average expected increase to 103 points. Value of the indicator related to the current situation increased to 112 points from 111.3 points, which coincided with the consensus forecast.
May futures for US light crude oil WTI (Light Sweet Crude Oil) rose to 48.33 dollars per barrel on the New York Mercantile Exchange.
May futures price for North Sea petroleum mix of Brent rose 55 cents to 55.77 dollars a barrel on the London Stock Exchange ICE Futures Europe.