Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Oil falls on U.S. crude stock build, Delta variant spread

08/04/2021 | 03:06pm EDT
FILE PHOTO: A gas pump is seen hanging from the ceiling at a petrol station in Seoul

NEW YORK (Reuters) -Oil prices fell for a third day in a row to a two-week low on Wednesday on a surprise build in U.S. crude stockpiles, negative U.S. economic report and worries the spread of the coronavirus Delta variant will weigh on global energy demand.

Traders noted the oil price drop came despite reports of increased Mideast geopolitical tensions.

Brent futures fell $2.03, or 2.8%, to settle at $70.38 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.41, or 3.4%, to settle at $68.15.

That was the lowest close for both benchmarks since July 20.

The U.S. Energy Information Administration (EIA) said crude stockpiles rose by an unexpected 3.6 million barrels last week, while gasoline inventories fell by a bigger-than-forecast 5.3 million barrels. [EIA/S]

"Crude prices remained heavy after the EIA crude oil inventory showed stockpiles unexpectedly rose last week," said Edward Moya, senior market analyst at OANDA, noting "the report was mixed as gasoline stockpiles fell more than expected."

With U.S. gasoline futures near their highest since October 2014, the gasoline crack spread - a measure of refining profit margins - closed at to its highest since hitting a record in April 2020 when WTI settled in negative territory.

Coronavirus cases worldwide surpassed 200 million on Wednesday, according to a Reuters tally, as the more-infectious Delta variant threatens areas with low vaccination rates and strains healthcare systems.

The United States and China, the world's two biggest oil consumers, are grappling with rapidly spreading outbreaks of the highly contagious Delta variant that analysts anticipate will limit fuel demand at a time when it traditionally rises in both countries.

The World Health Organization is calling for a halt on COVID-19 vaccine boosters until at least the end of September as the gap between vaccinations in wealthy and poor countries widens.

Also weighing on oil prices was a report from ADP showing U.S. private payrolls increased far less than expected in July.

Tensions in the Mideast Gulf, meanwhile, gave oil prices some support.

On Tuesday, three maritime security sources claimed Iranian-backed forces seized an oil product tanker off the coast of the United Arab Emirates, though Iran denied the reports.

Oman on Wednesday identified the Panama-flagged Asphalt Princess as the tanker involved in a hijacking which Britain's maritime trade agency earlier said was over.

This is the second attack on a tanker since Friday in the region, which includes the Strait of Hormuz. Britain and the United States are also blaming Iran for the earlier incident, in which drones crashed into the vessel and killed two sailors. Iran denies the reports.

(Additional reporting by Ahmad Ghaddar in London and Naveen Thukral in Singapore; Editing by Marguerita Choy and Diane Craft)

By Scott DiSavino


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
LONDON BRENT OIL 0.94% 78.01 Delayed Quote.49.38%
S&P GSCI BRENT CRUDE INDEX 0.88% 657.2773 Delayed Quote.47.80%
S&P GSCI CRUDE OIL INDEX 0.69% 405.4586 Delayed Quote.51.42%
WTI 0.93% 73.961 Delayed Quote.52.07%
Latest news "Economy & Forex"
02:22aXINJIANG'S POPULATION GROWTH HIGHER THAN NATIONAL AVERAGE : white paper
PU
02:22aXINJIANG'S ETHNIC MINORITY POPULATION TO MAINTAIN STEADY GROWTH : white paper
PU
02:20aGermans vote in close election to decide Merkel successor
RE
01:58aAustralian PM refuses to commit to phasing out fossil fuels
RE
01:52aCENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : China issues white paper on Xinjiang's demographic development
PU
01:12aSingapore-based logistics firm ninja van adds alibaba group as new investor - statement
RE
01:09aSingapore-based logistics firm ninja van says raises $578 mln in series e funding from existing and new investors
RE
09/25Deadly U.S. passenger train crashes in recent years
RE
09/2525 Chinese trade cooperation zones set up in Africa
PU
09/25CENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : Contract value of China's infrastructure construction in Africa soars
PU
Latest news "Economy & Forex"