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Crude oil prices declined despite the decrease of US oil reserves

The crude oil prices declined on Wednesday despite the decrease of US oil reserves. The US light WTI crude devalued by by 0.47% to 50.69 USD per barrel, while the European benchmark Brent recorded a drop in price of 0.32% to 53.76 USD per barrel.

On Tuesday, the American Petroleum Institute announced that the stocks in the week to December 2 fell by 2.2 million barrels. The reserves of gasoline rose by 0.83 million barrels and distilled products reported growth of 4.1 million barrels, which is the biggest jump of over two months. The reserves of repository in Cushing, Oklahoma, which is considered a hub for WTI, also increased by 4 million barrels.

Later today will be released the official figures of Energy Information Administration on oil reserves.

At night, oil prices ended a four-day winning streak because of fears weather OPEC will comply with the agreed reductions in yields, as well as waiting for the meeting on December 10 with non-OPEC countries. Since Russia and OPEC mined at a record high, the market is wondering whether both countries will fail to comply with the terms of the transaction from Vienna.

The CEO of the American Petroleum Institute, Jack Gerard, urged President-elect Donald Trump to restore the rule of law in the regulatory framework of the US and to become a priority approval of the pipeline Dakota Access Pipeline.

“The modernization of the national energy infrastructure is of benefit to US producers by keeping energy affordable, creating well-paid jobs and improve the environment”, said Gerrard.

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