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Oil price declined despite fall in U.S crude reserves

Oil prices further went down surprisingly after US reports fall in its crude inventories which further diminish the hopes of reviving fuel demand.

After rising around 1.6% in the previous session, Brent futures were down 1 cent at $48.60 a barrel by 0746 GMT but remain higher in Asian trading.

West Texas Intermediate crude reached at $46.09 a barrel and later was off by 4 cents at $45.67 a barrel after gaining 1.8% on Wednesday.

Both types of crude oil have risen about 8% this week after AstraZeneca revealed that its COVID-19 vaccine could be up to 90% effective.

The senior commodities manager at Phillip Futures Avtar Sandu said that despite much good news which support the oil prices, still there are some concerns in the market. He further said that the increasing production in Libya and the highest numbers of rigs in operation in the United States were few of the main risk factors.

Stockpiles at the Cushing, Oklahoma, delivery point for WTI, fell by 1.7 million barrels. U.S. oil stockpiles fell 754,000 barrels last week, data showed.

The gasoline demand is at lowest since June and it fell by 128,000 barrels per day BPD to 8.13 million BPD.

U.S. President-elect Joe Biden has requested people to not to go for big family gatherings, wear protective gear and maintain social distancing during the Thanksgiving holiday. But Americans are not taking any warning seriously and the U.S. recorded 2.3 million new Coronavirus cases in the last two weeks.

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