Oil prices rise on US inventories drawdown expectations


London: oil prices increased on Wednesday on expectations of more demand As the US dollar weakened and a report from the U.S. crude And gasoline list fell while the release of inflation data could point to a more supportive economic outlook.
Brent crude futures were up 39 cents, or 0.5%, at $82.77 a barrel at 0630 GMT. U.S. West Texas Intermediate crude futures (WTI) rose 42 cents, or 0.5%, at $78.44 a barrel.
US crude oil inventories fell by 3.104 million barrels in the week ended May 10, according to market sources citing American Petroleum Institute data on Tuesday.
Gasoline stockpiles fell by 1.269 million barrels and distillates increased by 673,000 barrels.
U.S. government inventory data is due on Wednesday and is also likely to show a decline in crude stockpiles as refineries increase capacities to meet rising demand for the fuel heading into the Northern Hemisphere summer driving season.
Still, the International Energy Agency (IEA) on Wednesday cut its forecast for oil demand growth in 2024 by 140,000 barrels per day (bpd) to 1.1 million bpd, mainly due to weak demand in developed OECD countries.
“Prices will remain range bound between $80-$90 until 2Q24,” said Vikas Dwivedi, global oil and gas strategist at Macquarie.
“After 2Q, we expect oil to turn bearish as a result of lower than expected demand due to non-OPEC supply growth, OPEC+ space capacity constraints and persistent inflation.”
US consumer price index (CPI) data is also due on Wednesday and should provide a clear indication of whether the Federal Reserve may cut interest rates later this year, boosting the economy and boosting fuel demand. Is.
Oil prices were also supported by a softer US dollar and concerns over Canadian oil supplies.
A major wildfire is approaching Fort McMurray, the center of Canada's oil sands industry, which produces 3.3 million barrels of crude per day, or two-thirds of the country's total output.

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