WTI crude futures rose above $70 per barrel on Wednesday, extending gains for a third session, after the latest EIA data showed a surprise build in US crude stocks and large draws in other fuels such as gasoline and distillate fuel stocks. The US oil benchmark is 5% higher this week, as US Treasury Secretary Janet Yellen said the government would be willing to take further action to protect deposits.
At the same time, the Fed increased rates by 25 bps and said a pause was considered in light of easing inflationary pressures and recent banking turmoil. The market also remains bullish on the outlook for China since the IEA stated the top crude importer is expected to drive a 2 million barrel increase in daily global oil demand this year. On the supply side, according to Russian Deputy Prime Minister Alexander Novak, the country has decided to keep its output at a reduced level through June, considering the current situation.
