Oil prices rally amid decline in crude supply

Oil prices rally amid decline in crude supply

Oil prices maintained gains on Asian markets on Wednesday following the report of the American Petroleum Institute (API) on a decline in U.S. crude supply.

International Brent Oil Futures went up by 3.46% to $28.09 by 10:12 PM ET (02:12 AM GMT) while U.S. Crude Oil WTI Futures climbed by 3.92% to $24.95.

The API approximated an unexpected draw of 1.247 million barrels from a stockpile of 2.774 million in the U.S. crude inventory during the end of March.

Oil gains have also been attributed to the U.S. Federal Reserve’s response to ease the economic damage by the coronavirus. After an unexpected Fed announcement on Monday revealed measures to bolster its economy, the U.S. Congress also said that it was closing in on a deal for a $2 trillion stimulus package which would conclude on Wednesday.

However, analysts cautioned that Saudi Arabia and Russia may continue to prolong their price war as demand decreases and even more countries go into lockdown.