Published Date : Sep 11, 2015
Oil prices were up 4.0% on Thursday while traders spent most of their attention on the growing demand by the U.S. for gas. The demand had overtaken the large surplus storages of U.S. crude oil inventories.
The weakening dollar additionally created affording space for the dollar-denominated crude to the traders that handled the euro. The greater Wall Street equity prices amplified the bullish sentiment in the U.S. oil markets.
Futures for U.S. crude oil closed up US$1.77 at US$45.92 per barrel. This was an increment of 4.0%. Meanwhile the global benchmark for crude, Brent, increased by US$1.20 to reach US$49.70 per barrel, which is a 2.50% increase.
The U.S. EIA published data on Thursday that showed the overall demand charts for the most recent four-week period. The charts showed that there was a 4.0% increase since the previous year. Gasoline stockpiles have only risen by nearly half of what was expected earlier.
Greater focus was laid on gasoline inventories however, as the EIA information displayed that crude storage was almost 2.6 million barrels in the past week. This is more than twice of the build of 933,000 barrels forecast that was posted by analysts on a poll by Reuters.
The increment was negated, however, by a drawdown in crude at the delivery point in Cushing, Oklahoma.
Chris Jarvis, an analyst at Caprock Risk Management, said that the demand is still strong in the year over year sense because consumers are taking advantage of the low distillate and gasoline prices.
The crude oil prices were down in Asian trading earlier. The prices fell immediately after China reported a drop of 6.0% in the country’s PPI for August, 2015.