Crude oil rises on falling US oil inventories

January 24, 2022 02:07 PM AEDT | By Arpit Verma

Crude oil rises on falling US oil inventories — Image source: Copyright © 2022 Kalkine Media®

Falling oil inventories in the US

US Crude oil inventories have continued to slide in the last month to land below their average levels, pushing oil prices to reach their highest level since 2014 in the last week.

Oil prices

Source: © Batareykin | Megapixl.com

The overall oil market is under crisis as OPEC+ nations are unable to meet their output targets.

As per the data from the U.S. Energy Information Administration, commercial inventories tumbled by 273 million barrels since July 2020. The commercial inventories are currently at 52 million barrels, nearly 4% below the five-year average (2015-19).

Adding to the existing supply concerns, Turkey's pipeline disruptions have further squeezed the supplies in the last week.

Bottom Line

The crude oil market remained under-supplied for almost the last 18-months leading to the tightest oil supplies in the quarter.

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