Oil prices rose on Wednesday morning after data showed US crude and product inventories fell more than expected last week, bolstering expectations that demand will outpace supply growth. supply increased even amid the COVID-19 spike.
U.S. crude oil (WTI) futures rose 43 cents, or 0.6%, to $72.08 a barrel, reversing Tuesday’s 0.4% drop.
Brent crude oil futures rose 38 cents, or 0.5%, to $74.86 a barrel, after falling 2 cents on Tuesday in its first drop in six days.
Data from the American Petroleum Institute industry group showed that US crude inventories fell by 4.7 million barrels for the week ended July 23, gasoline inventories fell 6.2 million barrels and product inventories. distillation fell 1.9 million barrels.
The figure differs from analysts’ estimates of a 2.9 million-barrel drop in crude inventories, following a surprise rise in crude inventories last week, the first increase since May.
Traders await data from the US Energy Information Administration (EIA) on Wednesday to confirm the drop in stockpiles.
“Most energy traders were unaffected by last week’s gains, so expectations will be high for the EIA crude inventory data for confirmation,” said OANDA analyst Edward Moya. inventories continue to trend down”,
In terms of gasoline stocks, analysts expect a drop of 900,000 barrels in the week to July 23.
Fuel demand is anticipated to be dampened by spiked cases of the highly infectious Delta variant in the US.
Liquefied natural gas prices in the US fell more than 3%
U.S. liquefied natural gas (LNG) prices fell more than 3% on Tuesday (July 27) from a 31-month high in the previous session, on forecasts of less hot weather and demand for air conditioners. down next week.
The price of LNG for August delivery fell 13.1 US cents, or 3.2%, to 3,971 USD/mmBtu. On Monday, the contract closed at its highest level since December 2018 for the sixth straight day.
Contracts for September delivery fell to about 3.93 USD/mmBtu.
Data provider Refinitiv said LNG production in the 48 states has fallen to 91.5 billion cubic feet per day (bcfd) so far in July, mainly due to pipeline problems in the West. Virginia earlier this month. That compares to an average of 92.2 bcfd in June and an all-time high of 95.4 bcfd in November 2019.
Refinitiv forecasts average gas demand, including exports, to fall from 95.4 bcfd this week to 92.8 next week. Forecasts for next week are lower than Refinitiv’s forecast on Monday due to expectations of less demand for heat and air conditioning.
Gas arrivals to U.S. liquefied natural gas (LNG) exporters have averaged 10.8 bcfd so far in July, up from 10.1 bcfd in June but still well below the 11-year record. 5 bcfd of April.
Source: VITIC/Reuters
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