- Crude oil prices inched higher on Monday.
- In the last week, both crude oil benchmarks rose for a fifth week in a row.
- US Crude oil inventories continued to fall in the last month to land below their average levels.
Crude Oil prices inched higher on Monday after recording significant drops on Friday due to an unexpected rise in US crude inventories. Crude oil prices hit seven-year highs, earlier in the last week.
April delivery Brent Crude oil futures last traded at US$87.90 per barrel down 0.94%, whereas March delivery WTI crude oil futures traded 1.01% up at US$86.00 per barrel as of 24 January 2022 at 12:34 PM AEDT.
Both the crude oil benchmarks rose for a fifth week in a row, in the last week. Oil prices are nearly 10% high in 2022, amid tight supplies.
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.
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.
The crude oil market remained under-supplied for almost the last 18-months leading to the tightest oil supplies in the quarter.