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 settles up near $75; sharp U.S. inventory drop counters virus worry

07/28/2021 | 05:53pm EDT
FILE PHOTO: A crude oil tanker is docked at Isla Oil Refinery PDVSA terminal in Willemstad on the island of Curacao

NEW YORK (Reuters) -Oil settled near $75 a barrel on Wednesday after data showed U.S. crude inventories fell to pre-pandemic levels, bringing the market's focus back to tight supplies rather than rising COVID-19 infections.

Brent crude ended the session up 26 cents, or 0.4%, to $74.74 a barrel, after posting on Tuesday its first decline in six days. U.S. West Texas Intermediate (WTI) crude settled up 74 cents, or 1%, at $72.39.

Crude inventories fell by 4.1 million barrels in the week to July 23, the U.S. Energy Information Administration (EIA) said, helped by lower imports and a decline in weekly production. Gasoline stocks also dropped - bringing them largely in line with pre-pandemic levels. [EIA/S]

Gasoline product supplied, a measure of demand, has reached a four-week average of 9.5 million barrels per day, the highest levels since October 2019, according to EIA data.

"A rebound in implied demand for both gasoline and distillates, as well as lower refinery runs, has encouraged decent inventory draws for both," said Matt Smith, director of commodity research at ClipperData.

Oil prices are up 45% this year, helped by demand recovery and supply curbs by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+.

The group agreed to increase supply by 400,000 barrels per day from August, unwinding more of last year's record supply cut, but this is seen as too low by some analysts given the rebound in demand expected this year. [OPEC/M]

The United States' supply response to higher prices has also been muted so far. Output could take more than four years to reach pre-pandemic levels, oil producer Hess Corp said on Wednesday during the company's second quarter earnings call.

However, a rising number of COVID-19 cases worldwide, despite vaccination programs, has limited the upside for oil and remains a concern.

Gasoline demand in the United States and Europe has begun to plateau. Analysts note that globally, pre-pandemic demand levels may not be seen until beyond next year if coronavirus infections and the slow pace of vaccinations further entrenches structural changes in demand.

The U.S. economic recovery remains on track despite the rise in COVID-19 infections, the Federal Reserve said on Wednesday in a new policy statement that remained upbeat and flagged ongoing talks around the eventual withdrawal of monetary policy support. The central bank left interest rates at 0%.

(Reporting by Laura Sanicola; Additional reporting by Alex Lawler in London, Sonali Paul in Melbourne and Koustav Samanta in Singapore; Editing by Carmel Crimmins, Will Dunham, Jason Neely, David Evans and David Gregorio)

By Laura Sanicola


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
LONDON BRENT OIL 0.94% 78.01 Delayed Quote.49.38%
MSCI SINGAPORE (GDTR) -0.56% 6540.383 Real-time Quote.13.02%
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"
11:52aPRESIDENCY OF REPUBLIC OF TURKEY : “We have established a social welfare system that leaves no one unprotected in our country”
PU
11:10aHuawei CFO leaves Canada after U.S. agreement on fraud charges, detained Canadians head home
RE
10:55aChina welcomes Huawei executive home, but silent on freed Canadians
RE
10:29aIndia merger of Sony, Zee to create TV powerhouse challenging Disney
RE
10:21aVietnam to relax COVID-19 restrictions to revive pandemic-hit economy
RE
09:55aHuawei's Meng arrives in Shenzhen after release from Canada
RE
09:55aHuawei chief financial officer meng wanzhou arrives in shenzhen, china after release from canada
RE
09:48aHundreds of Russians join Moscow protest over parliamentary election
RE
09:14aTwo Canadian detained by China for more than 1000 days return home -local media
RE
09:14aTwo canadians detained in china for more than 1,000 days arrive in calgary, received by prime minister justin trudeau-local media
RE
Latest news "Economy & Forex"