Data from the oil analyst, “Vortexa”, stated that the quantity of the main oil products currently held in floating stocks around the world increased more than twice in the past month, to reach about 68 million barrels.
“Vortexa” said the figure included gasoline, diesel and aviation fuel on April 22, compared with about 30 million barrels in the previous month.
Oil prices rose today, Thursday, amid signs that producers are cutting production to counter the collapse in demand due to the Corona virus pandemic, which is ravaging the world’s economies, while the US state of Oklahoma also moved to help oil companies pump less.
Analysts have warned that price increases may be temporary as storage tanks fill up around the world, but prices have recovered as investors reassess the strength of the global economy in light of the global health emergency.
And Brent crude rose 99 cents, or 15%, to $ 21.36 a barrel, after rising more than 5% on Wednesday.
US West Texas Intermediate crude futures rose 98 cents, or more than 7%, to $ 14.76 a barrel, after rising nearly a fifth in the previous session.
US crude futures tumbled below minus $ 40 on Monday, due to concerns that buyers may be dwindling storage space.
In the United States, the largest oil producer in the world, the Oklahoma State energy regulator said that companies can shut down wells without losing their lease contracts, in an initial victory for American oil producers who are struggling and seeking a breakthrough from the market collapse after a jump in production. Oklahoma is the fourth largest oil production state in the United States.
With oil consumption tumbling, the Organization of Petroleum Exporting Countries (OPEC), Russia and other producers, within the framework of the OPEC + group, will begin a record production cut of 9.7 million barrels per day from May 1. Analysts said these cuts may need to be expanded to accommodate lower demand.