Last week, the crude oil inventories fell by less than expected

On Wednesday, API informed that the crude oil reserves in the US were reduced for the second week. This happened amid the common concern of the demand’s prospects on the backdrop of a sharp increase of coronavirus cases in China. 

In the week ended December 23, the US crude oil reserves decreased by 1.3 million barrels. Such a situation is comparable to the decrease in reserves by 3.069 barrels which the API was talking about last week.

It is expected that the increase in the incidence of coronavirus in China, a major global importer of crude oil, will influence travel and economic activity. Ultimately, this will affect demand.

Everyone waits for the official government report on reserves that will be published on Thursday. It is expected that the report will show a decrease in weekly stockpiles of crude oil in the US by almost 1.52 barrels last week.