Crude oil tanks at the Cushing, Oklahoma storage and delivery center for US crude futures are more depleted than they have been in the last three years, and pricing of longer-dated oil contracts indicate that prices will remain lower for months. As the economy has recovered from the worst of the pandemic, demand for crude has increased among refiners producing gasoline and diesel in the United States. Other countries have turned to the United States for oil barrels due to increased demand throughout the world, which has boosted pulls out of Cushing.
Analysts expect the drawdown in stockpiles to continue in the immediate term, potentially boosting US oil prices, which have already risen by around 25% in the last two months. The spread between U.S. oil futures and the international Brent benchmark is expected to remain narrow. According to Reid I'Anson, senior commodity analyst at Kpler, inventories have declined due to an increase in U.S. demand, which has encouraged domestic refiners to hold crude at home to deliver fuel such as gasoline and distillates to U.S. customers.
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