Oil extends gains on US fuel stocks decline

Oil prices rose about 1 percent today, Friday, to continue achieving gains from the previous session, after data showed a decline in fuel stocks in the wake of the winter storm that swept the United States at the end of last year.

By 0203 GMT, Brent crude futures rose 79 cents, or 1 percent, to $79.48 a barrel, after rising 85 cents to $78.69 at settlement on Thursday, according to Reuters.

US West Texas Intermediate crude futures rose 80 cents, or 1.1 percent, to $74.47 a barrel. And it had recorded an increase of 83 cents to 73.67 dollars, when settling in the previous session

US Energy Information Administration data on Thursday showed that distillate inventories, which include diesel and heating oil, fell more than expected during the week ending December 30. It decreased by 1.4 million, compared to expectations for a decline of 396 thousand barrels

The administration also said that US gasoline stocks fell by 346,000 barrels last week, compared to analysts’ expectations for a decrease of 486,000 barrels.

While services activity in China contracted in December for the fourth consecutive month amid an increase in Covid-19 infections, the pace of declines slowed, while business confidence rose to the highest level in 17 months.

China, the world’s largest importer of crude oil, took a sudden turn in its strict “zero Covid” policy in early December after rare protests there, which led to a surge in the number of infections across the country.