In early Asian trading, oil rose after the U.S. government data showed another big draw in gasoline stockpiles despite growing demand. After breaking two days of losses on Wednesday, New York futures climbed toward 65 dollars a barrel. In the last two weeks, gasoline inventories have fallen by more than 25 million barrels while an indicator of demand increased to its highest level since November 2020.
Another significant rise in oil stockpiles may have tempered further price increases. Meanwhile China has increased its purchases of Iranian crude, even as other countries wait for the US sanctions to be lifted. According to traders and analysts imports have risen so much this month that ports in Shandong province are experiencing increased congestion.
Oil has risen more than 30% this year as the supply tightens as OPEC+ members curb production and the outlook for demand improves with the launch of Covid-19 vaccines. After an attack on an export terminal on Sunday, Saudi Arabia pledged to discourage more attacks on its energy infrastructure driving prices to their highest level since October 2018.
According to the Energy Information Administration, fuel stockpiles in the United States dropped by nearly 12 million barrels last week. Following a cold blast that shut down, a number of refineries crude stockpiles increased by 13.8 million raising the three weeks gain to nearly 37 million.
China’s imports of Iranian crude soared to their highest level in nearly two years in March as the Persian Gulf country slashed prices due to US sanctions. Next week, a high level in person meeting between Beijing and Washington is scheduled to take place in Alaska, and Chinese buying may be a topic of discussion.
