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Oil Prices Rise After Stockpiles Fall

Oil Prices extended on Wednesday the previous day’s small gains after an industry report showed U.S. crude stockpiles fell last week. The overriding trader and investor concerns about transportation curbs in some countries as Covid-19 cases surge.

Brent crude was 42 cents, or 0.6% at $75.16 a barrel by 0122 GMT, after edging higher on Tuesday. U.S. crude was up 53 cents, or 0.7% at $73.51 a barrel, having risen 0.1% in the previous session. The highly contagious Delta variant of the coronavirus is taking hold in many countries, urging new lockdowns or movement restrictions from Australia to Portugal, hopes of a broader recovery in demand for fuel remain intact.On the last day of June, Brent is heading for another monthly gain, which would mean the contract has risen for six out of the last seven months. U.S. crude has traded similarly since November.

Bob Yawger, director of energy futures, at Mizuho Securities said that the futures have been trading on a one-way ripper to the upside ever since the November 2 headline declaring a Covid-19 vaccine had been developed. Crude stocks in the U.S. were down by 8.2 million barrels, the American Petroleum Institute’s data showed, according to two sources, who spoke on condition of anonymity.

The gasoline inventories rose by 2.4 million barrels and distillate stocks were up by 428,000 barrels, the sources said. But hopes for a broad recovery received a boost from Mohammad Barkindo, Secretary-General of the Organization of the Petroleum Exporting Countries who said on Tuesday that demand is expected to rise by 6 million barrels per day in 2021, with 5 million BPD of that in the second half of the year.Rising Oil Prices at the pump will not be the biggest problem for some drivers this holiday weekend. Their biggest problem will be empty pumps – the result of a shortage of tanker truck drivers.

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