Oil steady after hitting nine-week highs

Oil steady after hitting nine-week highs
Oil steady after hitting nine-week highs

The reduction in inventories in the United States and the economic difficulties in China and the European Union are pushing prices up and down, in neutral territory.

The oil prices Oil prices steadied in early hours on Wednesday after gains were recorded after industry data showed a larger-than-expected reduction in crude inventories. USA, Although profits were limited by the economic difficulties of China and the Euro zone.

The futures of the Brent were up 7 cents, or 0.08%, at $86.31 a barrel, while crude oil futures were up 10 cents, or 0.08%, at $86.31 a barrel. West Texas Intermediate (WTI) U.S. crude oil gained 5 cents, or 0.06%, to $82.86 a barrel. This comes after both benchmarks hit their highest level since late April on Tuesday, then closed lower as fears of a slowdown faded. Hurricane Beryl stop production in the Gulf of Mexico.

Factors influencing international prices

Oil inventories of USA fell by 9.163 million barrels in the week ending June 28, according to market sources citing the figures on Tuesday. American Petroleum Institute (API)However, gasoline inventories rose by 2.468 million barrels and distillate inventories fell by 740,000 barrels.

Analysts polled by Reuters had expected a draw of 700,000 barrels in crude oil inventories, a 1.3 million barrel drop in gasoline stocks and a 1.2 million barrel drop in distillate inventories. These data will be updated today by the Energy Information Administration.

On the other hand, surveys showed that the activity of services in China expanded at the slowest pace in eight months and confidence hit a four-year low in June, due to weaker growth in new orders, while overall business growth in the Euro zone also slowed sharply last month.

Likewise, the production of the OPEC Oil prices rose in June for a second straight month, according to a Reuters poll released on Tuesday, as increased supply from Nigeria and Iran offset the impact of voluntary supply cuts by other members and the broader alliance. OPEC+.

Source: Ambito

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