Oil glut is not as severe as expected
Oil prices climbed up on April 30. The market was jolted alive by the data stating that US glut is not developing as fast as previously expected.
WTI crude futures jumped 9.2% - US$1.39 - and reached US$17.75 per barrel at one point, them sliding back to US$16.45. Brent climbed 4.6% - US$1.27 - and stood at US$23.81. Earlier in the session the contract reached US$25. The most promising contract was for July, gaining US$1.15.
Last week overall US crude stockpile accumulated 9 million barrels and reached 527.6 million. The figure is much lower than expected 10.6 million barrel daily increase that was expected by the experts polled by Reuters. US gasoline storage dropped from the record high of the last week, losing 3.7 million barrels.
Some traders believe, that if the current dynamic continues to develop further, it might mean that the worst part of the crisis is over for the market.
A pleasant addition to the optimism was China Petroleum and Chemical Corp joint statement. The companies claim, that their refined oil production jumped to 90% of the pre-pandemic volumes.