Commercial crude inventories fell for the 5th consecutive week in the United States. But inventories of gasoline and distillate products swelled more than expected, casting doubt on demand.

Oil markets are pausing on Wednesday, after the "rally" that brought prices to the highest since January 2020, before the coronavirus crisis. The announcement of a further decline 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% to $52.81 per barrel (February futures contract on the Nymex), while North Sea Brent due March fell 1% to $56. This profit-taking coincides with a rebound in the dollar, which raises the price of basic materials 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 raised doubts about the pace of the economic recovery expected in 2021.

Crude oil reserves in the United States fell for the fifth week in a row, according to the report of the US Energy Information Agency (EIA) released Wednesday. For the week ended January 8, 2021, commercial crude inventories (excluding strategic reserves) 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 about 8% above their five-year average.

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

Despite Wednesday's pause, the price of WTI crude is still up 9.3% since the beginning of the year and Brent is up 8.3%. Oil has been supported by the prospect of a new fiscal stimulus package in the United States, which should support economic recovery this year, and consequently oil demand. Opec+'s decision at the beginning of January not to lift its production restrictions too quickly has also contributed to the rise in prices in recent weeks.