The US government’s Strategic Petroleum Reserve currently hold only 78 million barrels of spare capacity. Credit: Al Pavangkanan.

Oil prices have surged on signs that the US crude glut is growing less quickly than expected, thereby extending sharp gains in the previous session.

According to Reuters, West Texas Intermediate (WTI) futures were trading at $17.21 a barrel at 0350 GMT, a 14.3% gain from the previous session.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Meanwhile, Brent crude LCOc1 futures rose $2.33 to $24.87 a barrel.

Data released by industry group US Energy Information Administration (EIA) has highlighted an increase in US crude stocks to 527.6 million barrels in the week that ended on 24 April, by nine million barrels.

The recovery of gasoline demand, which has been shattered by Covid-19 restrictions, also supported oil prices.

CMC Markets Sydney chief market strategist Michael McCarthy was quoted by the news agency as saying: “I think we’re closer to an equilibrium price for WTI between $15 and $20. That reflects all of the known knowns – the demand destruction that has led to storage filling up and pending supply cuts.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Meanwhile, gasoline stockpiles in the US dropped by 3.7 million barrels, with a little rise in fuel demand countering a rebound in refinery output.

ING commodities strategy head Warren Patterson said: “In the current environment, the market appears desperate for any positive signs, no matter how mild they seem. The focus this week has been on inventory and demand numbers from the US.”

US President Donald Trump said his administration is all set to release a plan to help oil companies in the country, shortly.

According to Treasury Secretary Steven Mnuchin, this is expected to include addition of more barrels of oil to national reserves.