Global oil prices rose on Thursday despite the Energy Information Administration (EIA) revealing that U.S crude oil inventories rose by 15.2 million barrels to 503.2 million barrels last week.
Brent crude oil, against which Nigerian oil is priced, rose by 78 cents or 3 percent to $49.56 per barrel. While the US West Texas Intermediate (WTI) gained 76 cents or 3 percent to $45.52 per barrel.
“The market is definitely in a state of shock, but overall this is looking like a fluke report and the market can detect brighter days ahead,” said John Kilduff, partner at Again Capital LLC in New York.
Experts attributed the increase in US inventories to low oil demand recorded in the week due to the Thanksgiving holiday.
“The significant increase in gasoline and distillate inventories is likely a result of lower oil demand post the Thanksgiving holiday, as well as additional stay at home measures across country,” said Andrew Lipow, president of Lipow Oil Associates in Houston.
The news that a U.S advisory panel will meet today, Thursday to recommend that the Food and Drug Administration approve Pfizer and BioNTech COVID-19 vaccine in the United States boosted crude oil prices ahead of the meeting.