Oil prices rose for a second consecutive yesterday, with WTI closing in at USD $ 107.46 a barrel, increasing by 0.33 percent. Brent future was priced at USD $ 122.89 a barrel, registering a price hike of 0.01 percent.
The US Energy Department released reports stating that crude oil stockpiles fell by 7 million barrels to 209.7 million barrels last week, which is the biggest decline in stockpiles since October 9, 1998. This report increased investor speculation that demand in the US has increased, and it promoted investors to buy oil stockpiles, which resulted in the price increase.
Meanwhile, oil production restarted in Kuwait after it had been disrupted yesterday due to a severe sandstorm in the country. Concerns about supply disruptions from the country have been abated for now. However, the stalemate in Libya continues, with oil production severely battered in the country due to the fighting between the rebels and Muammar Qadhafi. Oil prices are expected to remain high in the coming months, due to an increase in the demand of oil as the summer season kicks into full swing, as well as concerns about dwindling oil supplies from Libya affecting the supply chain.