Crude oil prices recorded gains for the second consecutive session during mid-European trading today, Thursday, April 17, heading for weekly gains, the first in April, benefiting from concerns about Iranian supplies. Brent crude rose by about 0.80%, trading at $66.37 per barrel, while US crude (NYMEX) traded at $63.09 per barrel, up about 1.00%.
The US Energy Information Administration report issued yesterday, Wednesday, showed a rise in US crude oil inventories by 2.3 million barrels in the past week ending April 11, contrary to expectations of an increase of 800,000 barrels. In detail, gasoline inventories fell by about 2 million barrels, while distillate inventories, which include heating fuel and diesel, fell by about 1.9 million barrels. The US administration imposed sanctions targeting Iranian oil exports as part of its efforts to exert further pressure on Iran and weaken its oil exports for the sake of negotiations on its nuclear program. The sanctions targeted a China-based oil refinery, as well as several companies and vessels responsible for facilitating Iranian oil shipments, raising market concerns about supplies. Meanwhile, OPEC announced that Iraq, Kazakhstan, and several other countries have announced updated plans for a combination of production cuts to compensate for the recent increase.
We note that Thursday, April 17, is the last day for crude oil settlement, as markets are expected to enter a holiday on Friday, known as Good Friday, the day before Easter.