Oil prices recorded a decline during trading yesterday, following a sudden rise in US crude inventories last week, as cold weather conditions played a role in stopping demand from refiners, which was forced to close. The American Petroleum Institute report stated that stocks rose by about one million barrels in the week ending February 19.
The American Petroleum Institute data showed that crude oil refinery flows fell by 2.2 million barrels per day.
Brent crude and West Texas crude fell from their highest levels in 13 months, as Brent crude fell from levels of $ 65.80 a barrel and is currently trading around levels of $ 64.10, while WTI crude fell from levels of $ 63 a barrel, to currently trade around 61.30 levels.
Markets will be awaiting confirmation from the US Energy Information Administration later today that stocks are rising, despite shale oil production being hit by the unprecedented icy weather in the southern US. The drop in prices is seen as a temporary pause after rising more than 26% to its highest level in 13 months since the start of the year.
Prices had risen as a result of US production disruptions and supply discipline by OPEC+, led by Saudi Arabia, which voluntarily reduced an additional million barrels per day.
Technically, prices are trading in an ascending trendline in the short term, and with prices trading below the $ 64 levels for Brent crude, and the $ 61 levels for WTI, it is expected that we will witness more selling pressure, and we may witness a downward correction during the coming period.