Oil rebounds sharply, posts double-digit gains after US crude inventories crater

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Oil rebounds sharply, posts double-digit gains after US crude inventories crater

On Wednesday, the 29th of April 2020, US WTI crude futures’ prices jumped more than 22 per cent, while the Brent crude futures’ prices had wrapped up the day over 10 per cent higher, as investors’ optimisms had rallied following release of EIA (Energy Information Administration) data that the US crude stockpiles had grown less-than-anticipated after a desperate dive of US onshore drilling companies’ output aimed at staying operational amid a multi-year low crude oil futures’ prices.

Aside from that, over the narratives of a growing hope that the pandemic-driven lag in crude oil demand would recover shortly as a number of European economies alongside some US states had eased the forced lockdown measures, investors’ optimism had attained further bullish wing.

Besides, according to EIA’s (Energy Information Administration) weekly data on US crude stockpiles that released on Wednesday (April 29th), US crude oil inventories had inflated by 9 million barrels per day last week to 527.6 million barrels, lower than an analysts’ expectation of a rise of 10.6 million barrels per day.

Nonetheless, adding that the slowdown in US crude stockpiles might be stemmed from a delay in filling up to the brims, as oil traders were seeking for potential storages which could again plunge the crude oil futures’ prices in to a negative territory, a director of futures at Mizuho in NY, Bob Yawger said on Wednesday (April 29th), “The crude oil number is a big number at the end of the day, but it’s not as big of a number that we had for the last three weeks.

The time to total crisis mode has been kicked down the road a little bit. ” Citing statistics, on Wednesday’s (April 29th) market wind down, the US West Texas Intermediate crude oil futures’ prices had skyrocketed by 22 per cent to $15.06 per barrel, while the UK crude futures’ prices climbed 10.2 per cent to settle down the day at $22.54 a barrel.