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Crude Oil Future Scales up Post US Inventory Draw

Crude Oil futures went higher in early morning trade in Asia July 28, assisted by a deteriorating dollar and positive data from API indicating a larger-than-expected projection in Crude Oil inventories. At 10:40 am Singapore time, the ICE September Brent futures deal was elevated by 44 cents/b (0.59%) from the earlier seal at USD74.92/b, as the NYMEX September light sweet crude deal was up by 48 cents/b (0.67%) to settle at USD72.13/b.

According to analysts, API information released late July 27 implied that US Crude Oil stocks dropped by 4.73 million barrels in the week ended July 23. Analysts reviewed by S&P Global Platts on July 26 had been anticipating a 2.5 million-barrel draw.

Stakeholders will be viewing the EIA’s weekly report owing for making it public at 10:30 am EST to validate the draw. Edward Moya, OANDA senior market analyst, said that most energy traders were shocked by last week’s build, so it is highly expected from EIA Crude Oil inventory data to authenticate inventories resume their falling trend.Increasing oil prices were also assisted by a deteriorating dollar with the ICE US dollar index down to 92.45, which is by 0.22%/.

Margaret Yangon, IG DailyFX Strategis, said on July 28 that Oil prices are propagating, moving the tailwind of poorer US dollar as investors anticipate Jerome Powell to recommence his dovish stance at Wednesday’s FOMC conference.Yang said that lasting pandemic worries and the rise of a new variant of COVID-19 delta variant might cast a shadow over the viewpoint for power demand, limiting the upside.

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