Another week and another positive news brought by American Petroleum Institute during its latest oil inventory update.
For the week ending May 28, the crude oil stockpile recorded a 5.36-million-barrel draw. Such is significantly higher than the average consensus released by analysts earlier which came at 2.11 million barrels.
This also extends the positive momentum ignited in the previous week, in which inventory came at an unprecedented 400,000-barrel draw.
Only halfway through the year, the black gold already managed to clock in a total inventory growth amounting to 46 million barrels.
With this update, the Brent crude advanced another $0.40, sending the spot price to $71.75 per barrel.
The European benchmark retained its strong position above $70 per barrel and even managed to notch a multi-year high.
The West Texas Intermediate followed suit and added $0.34 to $69.17 per barrel. The American benchmark notched $69.40 per barrel at one point of the session before easing. This settlement is the highest recorded so far since October 2018.
Not even a week passed since analysts forecasted Brent’s advance towards $70. Today, WTI is making big strides towards the number which its counterpart has long ascended to the top.
This brings back the discussion on the possibility of breaching $80 during the second half of the year, exactly as how experts from Goldman Sachs predicted.
A few months ago, analysts from the financial juggernaut released an $80 per barrel price target on Brent. It looks like the latter will notch such a settlement faster than spectators expected.
OPEC Adds to the Positive Side
The market’s not yet done with the excitement brought by the bettering crude inventory data but OPEC already comes with another surprise.
In an update from its latest ministerial meeting on Tuesday, the elite oil association noted that it will stick to its plan of the gradual return of supply.
This decision pressed the right buttons for commodity traders, thus supporting the price upwards.
Member states noted that oil demand is not beginning to take hold on the driver’s seat.
As the first half of 2021 is close to coming at a close, the group gave out a more hawkish forecast for the remaining months of the year.
In an estimate, OPEC+ said that demand will outweigh supply by the end of the year. Actual figures were described as 99.8 million barrels per day in comparison to 97.5 million barrels per day coming from the supply side.
Regardless of this, the association is adamant to stick to gradual easing to ensure that no stone is left unturned.