Reduced oil and distillate stockpiles boost oil growth

The rise in oil prices continues for the fourth day in a row amid tightening stocks of U.S. crude, heating oil and jet fuel in the United States. The increase in the cost of black gold is characterized by adverse weather conditions and growing demand for jet aircraft.

On Wednesday, Brent and WTI crude oil jumped due to a significant decline in US crude oil inventories. It is worth noting that analysts did not expect such a massive reduction in reserves. The drop amounted to 5.89 million barrels last week.

Distillates’ stockpiles, including jet fuel and heat oil, also declined, falling short of growth expectations.

A severe winter storm hitting the US is expected to bring cold snaps as far south as Texas. Record low temperatures will be recorded in the eastern states and Florida.

Jet fuel consumption is also expected to increase due to the post-COVID-19 travel boom at the end of the holiday season.

According to Baden Moore, head of commodity research at National Australia Bank, the crude oil market is perfectly balanced.

He also added that China's re-opening and continued steady roll-up in global jet demand could tighten global crude markets and boost prices.