In Asia on Wednesday, oil prices increased, reaching $99 per barrel after a decline in crude supplies in United States hinted towards an improved demand. The drop in crude supplies came totally unexpected which was another reason why oil prices reacted in a positive way and jumped upwards.
The contract of benchmark crude for March delivery, increased by 43 cents, to settle at a value of $98.84 per barrel during electronic trading, around midday Singapore time at the New York Mercantile Exchange. The contract of benchmark crude increased by $1.50, to settle at a value of $98.41 a day before, on Tuesday.
On the other hand, in London, at the ICE Futures Exchange, Brent crude was steady, as it valued at $116.23 per barrel.
Late Tuesday, it was revealed by the American Petroleum Institute that there was a drop in crude inventories in United States, as figures suggested that they dropped by 4.5 million barrels in the past week, whereas according to Platts’s survey of different analysts, crude supplies were expected to rise by 2.3 million barrels.
Moreover, gasoline inventories added 4.4 million barrels in the same week as crude supplies dropped, while distillates increased by 386,000 barrels. Later Wednesday, the Energy Information Administration of the Energy Department will report its weekly supply data.
Oil has oscillated near $100 per barrel for the past few months as traders look for signs of an improving United States economy during a time when the global economy is slowing down.
During other energy trading, heating oil dropped by 0.7 cents, to settle at a value of $3.18 per gallon, while futures of gasoline dropped by 0.4 cents, to settle at a value of $2.92 a gallon. Moreover, natural gas increased by 0.8 cents, to settle at a value of $2.48 per 1000 cubic feet.
