Commercial crude inventories fell for the fifth consecutive week in the United States. But stocks of gasoline and distilled products swelled more than expected, casting doubt on demand.

Oil markets take a break on Wednesday, after the "rally" which took prices to their highest since January 2020, before the coronavirus crisis. The announcement of a further drop in weekly crude inventories in the United States, for the fifth week in a row, was not enough to support prices.

After a hesitant start to the session, US light crude WTI fell 0.75% in the evening to $52.81 a barrel (February futures contract on the Nymex), while Brent North Sea crude due March fell 1% to $56. These profit takings coincide with a rebound in the dollar, which makes the price of basic materials more expensive for international buyers. In addition, the announcement of a record 4,000 deaths from the coronavirus in 24 hours in the United States may have cast doubts on the pace of the economic recovery hoped for in 2021.

Crude oil reserves in the United States have therefore fallen for the fifth week in a row, according to the report of the American Energy Information Agency (EIA) released on Wednesday. Over the week ended January 8, 2021, commercial crude inventories (excluding strategic reserves) thus fell by 3.2 million barrels (mb), slightly more than expected by the market consensus (-3 mb). At 482.2 mb, however, these stocks remain around 8% above their five-year average.

While crude oil inventories continue to decline, US gasoline reserves have increased by 4.4 mb against +2.7 mb expected, and distillate product inventories (which include diesel and heating oil) have also increased, by 4.8 mb, much more than the +2.6 mb expected by the market.

Despite Wednesday's break, the price of WTI crude has risen another 9.3% since the start of the year and Brent is up 8.3%. The black gold was supported by the prospect of a new fiscal stimulus plan in the United States, which should support the economic recovery this year, and consequently, oil demand. OPEC+'s decision in early January not to lift its production restrictions too quickly has also contributed to the rise in prices in recent weeks.

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