Oil extends gain from one-year high as lower stockpiles aid rally

Oil extends gain from one-year high as lower stockpiles aid rally

Bloomberg

Oil extended gains after closing at the highest level in more than a year as declines in US and Chinese crude stockpiles added impetus to a rally driven by tightening global supplies. Futures in New York climbed to trade above $55 a barrel. The American Petroleum Institute reported crude inventories fell by 4.3 million barrels last week, people familiar with the data said. It would be a seventh decline in eight weeks if confirmed by government data on Wednesday. Chinese stockpiles dropped to the lowest in almost a year, according to data provider Kayrros. The tighter supplies are bringing traders flocking back to the oil market. Holdings of WTI futures contracts are now at their highest level since April, having jumped by the equivalent of more than 235 million barrels so far this year. Whittling down stockpiles has been a major objective for Opec and its allies. A committee of the alliance was scheduled to meet on Wednesday to discuss the supply and demand situation as the pandemic continues to rage but more vaccines are being rolled out. Crude's futures price curve is established in a bullish backwardation structure, suggesting investors are comfortable. "The crude oil market is getting close