The price of oil rose by about 0.7%, supported by data on oil reserves in the United States. Meanwhile, the report on China's trade balance, which indicated an increase in oil imports, also strengthened expectations of an increase in demand for petroleum products.
Yesterday, the U.S. Energy Information Administration (EIA) reported that crude inventories fell by 1.361 million barrels in the week ended May 3, following a rise of 7.265 million barrels in the previous week. Economists had predicted a drop of 1.3 million barrels. At the same time, gasoline stocks rose by 0.915 million barrels, recording the second increase in a row. The previous week saw an increase of 0.344 million barrels. Elsewhere, distillate stocks rose by 0.56 million barrels. The previous week saw a reduction of 0.732 million barrels. Market participants ignored the increase in gasoline and distillate stocks as refineries prepare for the upcoming automotive season. Meanwhile, U.S. crude oil imports averaged 7.0 million barrels per day last week, increased by 198 thousand barrels per day from the previous week.
Also in focus was news that the Biden administration has raised the price it is willing to pay to replenish the country's emergency oil reserves. The Ministry of Energy will pay up to $79.99 per barrel, and this is the first time a clear ceiling has been set.
Meanwhile, data published by the General Administration of Customs showed that in April China's exports rebounded more than expected on a lower base of comparison, while import growth also exceeded economists' forecasts. The report also showed that shipments of crude to China, the world's biggest oil importer, increased by 5.45% compared to April 2023, totalling 44.72 million metric tons, or about 10.88 million bpd.