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US crude oil advanced for the fifth session in a row on Wednesday, despite a US government report showing a massive build in domestic crude inventories.
The Energy Information Administration reported that US crude oil reserves increased by 19 million barrels, the third the largest weekly increase since EIA records began in 1982, which analysts say largely reflects the The slower pace of refinery operations continued after closings during last month’s winter storm.
But oil prices have enjoyed support in recent days on hopes of a strong rebound in Chinese demand, fears over the upcoming G-7 price cap for Russian refined products and a weakening dollar.
Closed February Prior Month Nymex Crude Oil (CL1:COM) +3% at $77.41/bbl, while March Brent crude (CO1:COM) settled +3.2% at $82.67/bbl, its third straight gain.
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Analysts say oil markets are Less focused on general inventories and more on the global outlook, including rising crude consumption in China, which has been buying cargoes of US crude ahead of the Lunar New Year holidays.
Earlier this week, the EIA forecast that global fuel oil consumption will exceed 100 million bbl/day on average this year for the first time since 2019.
