Oil Prices Rise After Government Reports Drop In U.S. Crude Stock

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Oil prices rise after government reports drop in U.S. crude stock. On Wednesday, oil surged more than 2 percent following news of an unexpected and sharp decline in crude stocks.

Prices were already higher after Saudi energy minister hits back at President Donald Trump’s tweet.

The U.S. Energy Information Administration revealed that the U.S. commercial crude stockpiles tumbled by 8.6 million barrels. U.S. gasoline stocks dropped by 1.9 million barrels and accounts of fuels like diesel saw ran down of around 300,000 barrels.

International Brent crude futures grew $1.19, or 1.8 percent, settling Wednesday’s session at $66.40 a barrel.

U.S. West Texas Intermediate (WTI) crude futures saw jump of 2.6 percent, or $1.44, trading at $56.94 a barrel on the day.

The report also notes that weekly U.S. oil production ticked up to 12.1 million barrels per day and Crude exports also closed high of 3.6 million bpd.

Oil prices incerased more than 3 percent following Trump’s tweet at OPEC, suggesting the organization to “please relax and take it easy.”

Saudi Arabia’s influential energy minister Khalid al-Falih said on Wednesday that OPEC is proceeding cautiously towards supply cuts, directly responding to comments from President Donald Trump.

Falih said, “We are taking it easy. The 25 countries are taking a very slow and measured approach. Just as the second half of last year proved, we are interested in market stability first and foremost.”

“Based on current market data, the so-called OPEC+ group is likely to continue with the production cuts until the end of the year,” a Gulf OPEC source said.