Crude Oil Inventories in U.S. Declined, Benefiting Prices

Crude oil futures extended their rally after the US government data showed falling inventories of crude and refined products.

U.S. West Texas Intermediate (WTI) jumped by 0.27% to $76.77 while Brent inched up by 0.25% to $79.43.

US crude oil inventory declines extended in the week ended December  24 as refinery demand remained high and production ticked back up, EIA data showed Dec. 29.

Commercial crude inventories declined 3.6 million barrels to 420 million barrels in the week ended Dec. 24, the EIA said, pushing stocks 7% below the five-year average for this time of the year — the tightest since mid-September.

A 4.3-million-barrel decline in US Gulf Coast inventories comprised the bulk of the draw, which was offset only slightly by small gains on the US East Coast and Midwest inventories.

US crude production rose to a 2021 high of 11.8 million b/d for the week ended Dec. 24, the EIA said.