Crude oil closes: inventory data unexpectedly increases Crude oil futures closed lower under pressure

On December 30, crude oil futures closed lower
as investors weighed energy demand and economic outlook, while unexpected growth in U.
S.
inventory data weighed on energy prices.

West Texas Intermediate crude for February futures on the New York Mercantile Exchange fell 56 cents, or 0.
7 percent
, to settle at $78.
40 a barrel.
ICE Eurofutures February's global benchmark Brent crude futures closed at $82.
26 a barrel, down 1.
2 percent
.
Brent crude futures, the most actively traded March, fell 53 cents, or 0.
6 percent
, to $83.
46 a barrel.

January gasoline futures rose 0.
3 percent to settle at $2.
3707 a gallon on the New York Mercantile Exchange, while January heating oil futures fell 1.
9 percent to settle at $
3.
313 a gallon.
February natural gas futures fell 2.
9% to settle at $
4,559 per million British heat.

Craig Ellam, senior market analyst at Oanda, said in a note: "This is quite a shift from fighting every case to living with the virus, and as the number of cases surges, the health system is overwhelmed, which has created great uncertainty
for the start of the year.
How the leadership will respond is as clear
as the data itself.
So it's going to be a learning process for investors, and we're going to take advantage of the little data and anecdotal evidence
we have.
”

The U.
S.
Energy Information Administration said Thursday that U.
S.
crude inventories rose by 700,000 barrels
last week.
Gasoline inventories decreased by 3.
1 million barrels and distillate inventories increased by 300,000 barrels
.
On average, analysts surveyed by S&P Global Commodity Insights expect crude inventories to fall by 3 million barrels, gasoline inventories by 2.
2 million barrels and distillate inventories by 800,000 barrels
.

Matt Smith, chief oil analyst for the Americas at Kpler, said: "Weak exports and increased refining activity, countering strong imports and lower production, the Strategic Petroleum Reserve (SPR) has rejoined it, all of which have led to a stalemate and a slight increase
in crude inventories.
"

"Gasoline inventories showed a sizable decline amid hints of a slight rise in gasoline demand as consumers flocked to gas stations ahead of holiday travel and bomb cyclones, while distillates showed a slight increase as demand fell month-on-month," he said
.

The American Petroleum Institute announced late Wednesday that U.
S.
crude inventories fell by 1.
3 million barrels
last week, citing the data, according to sources.
The industry's trade group expects gasoline inventories to increase by 510,000 barrels and distillate inventories by 388,000 barrels
.

Separately, the U.
S.
Energy Information Administration reported a reduction of 213 billion cubic feet
in natural gas inventories.
Analysts surveyed by S&P Global Commodity Insights had expected net natural gas production at 196 billion cubic feet
.