Oil price closes higher as US oil inventories fall
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| Oil prices rise to the highest level |
"Oil prices" rose yesterday, Wednesday, October 20, due to data from the US Energy Information Administration that crude stocks in the largest storage site in the United States reached their lowest level in three years, which led to a decline in fuel stocks across America, indicating an increase in demand.
The price of Brent crude oil in futures contracts ended today's trading, up 74 cents, or 0.9%, to reach $85.82 a barrel, its highest level since October 2018.
And oil prices in US West Texas Intermediate crude futures increased by 91 cents, or 1.1%, to reach $83.87 a barrel.
The supply of crude is scarce as the natural gas crisis continues
Oil prices continue to rise amid tight supply, with "OPEC" continuing to slowly increase production instead of intervening to pump more crude into the market as US demand for energy escalates.
The US Energy Information Administration reported that US crude stocks fell by 341,000 barrels in the week ending October 15 and settled at 426.5 million barrels.
This is the lowest level since October 2018, indicating a shortage in the market that may take some time to reduce, and the decrease in inventories came despite the decline in crude consumption in refineries.
In the same context, the natural gas crisis appeared in the global market due to the high prices of coal and gas, which led to the shift to diesel and oil for power generation in the industry.
Saudi Energy Minister Abdulaziz bin Salman said users switching from gas to oil could represent a demand of between 500,000 and 600,000 barrels per day, depending on winter weather and related energy prices.
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