Oil prices in the morning session (August 11) rose due to an improved US fuel demand outlook. Industry data showed US crude and gasoline inventories fell last week, while the US Energy Information Administration raised its forecast for fuel demand in 2021 and showed May-to-May consumption. 7 was higher than expected.
U.S. crude oil (WTI) prices rose 6 UScents, or 0.1%, to $68.35 a barrel, up 2.7% on Tuesday.
Brent crude oil futures rose 3 US cents to $70.66 a barrel, after gaining 2.3% from Tuesday.
“Oil prices rose on hopes that oil demand growth will outpace supply growth, despite the current Delta variant being highly infectious,” said Commonwealth Bank commodity analyst Vivek Dhar.
The rapid spread of the Delta variant pushed the number of COVID-19 cases and hospitalizations to a six-month high. The US Energy Information Administration (EIA) said that job growth and increased travel activity have boosted gasoline consumption since the beginning of 2021 until now.
Gasoline consumption in the U.S. is projected to average 8.8 million bpd in 2021, up from 8 million bpd in 2020. Still, the EIA predicts it will remain well below the level. consumption in 2019 to the end of 2022 due to the increase in the number of people working remotely.
Data from the American Petroleum Institute showed U.S. crude inventories fell by 816,000 barrels and gasoline inventories fell 1.1 million barrels for the week ended Aug. 6, according to two market sources.
The EIA’s monthly report shows that supply demand from the Organization of the Petroleum Exporting Countries (OPEC) will exceed OPEC’s supply by 1 million bpd in the third quarter and 300,000 bpd in the fourth quarter. 2021.
On August 10, the US Senate approved a $1 trillion infrastructure package, possibly the nation’s largest investment in decades, in roads, bridges, airports and roads. Water. If enacted, the investment package will boost the economy and demand for petroleum products, analysts say.
However, analysts remain wary of the latest COVID-19 outbreak in China, which could still dent demand.
Liquefied natural gas prices in the US increase
U.S. liquefied natural gas (LNG) prices rose on Tuesday (August 10) as gas prices in Europe hit record highs and American homes and businesses had to install air conditioners during the heat wave. hot in Texas and the Pacific Northwest.
Gas futures rose 2.9 US cents, or 0.7%, to $4,089/mmBtu.
Data provider Refinitiv said gas production in the 48 US states rose to an average of 92.0 billion cubic feet per day (bcfd) in August from 91.6 bcfd in July. That number compared to an all-time high of 95.4 bcfd in November 2019.
With hot weather expected through the end of August, Refinitiv forecasts average US gas demand, including exports, to rise from 92.4 bcfd this week to 94.0 bcfd next week due to Generators burn fuel for air conditioning use.
Gas to U.S. liquefied natural gas (LNG) exporters has fallen to an average of 10.2 bcfd so far in August as most of the Cameron and Sabine plants in Louisiana cut from 10 ,8 bcfd in July and a record 11.5 bcfd. in April.
Source: VITIC/Reuters
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