Press "Enter" to skip to content

Crude stockpiles Draws Down Brent Surges

Crude stockpiles in the United States, the world’s largest oil consumer, fell to their lowest level since January 2020, sending Brent crude oil prices back above $75 a barrel. By 0247 GMT, Brent crude oil futures had risen 36 cents, or 0.5 percent, to $75.10 per barrel, while WTI crude oil futures had risen 33 cents, or 0.5 percent, to $72.72 per barrel.

Brent rose above $75 a barrel for the first time in more than two years in June but plunged sharply earlier this month on concerns about the Delta variant’s rapid spread and a compromise deal by leading OPEC members to increase supply. However, ANZ analysts said, “The (oil inventory) falls suggest the rise in cases of COVID-19’s Delta variant is having little impact on mobility.”

Crude stockpiles declined 4.1 million barrels in the week ending July 23, according to the US Energy Information Administration (EIA), owing to lower imports and lower weekly output. Stocks of gasoline fell as well, putting them back to pre-pandemic levels. Despite an increase in coronavirus infections, the United States’ economic recovery is on pace. The Federal Reserve said on Wednesday in a policy statement that remained positive and mentioned continued discussions about the ultimate withdrawal of monetary policy support.

Nonetheless, there are some concerns about fuel demand, with gasoline demand in the United States and Europe beginning to level off. Moreover, analysts say that if coronavirus infections and the delayed pace of vaccines continue to cement structural shifts in demand, pre-pandemic demand levels may not be seen until next year. Moreover, COVID-19 is still wreaking havoc on the Americas, with Argentina, Colombia, Cuba, Ecuador, and Paraguay among the countries with the highest weekly death rates in the world, according to the Pan American Health Organization.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *