Benchmark stocks rose after three days of decline, despite the bearish effect of weak Chinese demand and a possible ceasefire in the Middle East.
The oil prices rose in early hours on Wednesday on expectations that crude and gasoline inventories in USA fell last week, although gains were limited by the resumption of production on the US coast of the Gulf of Mexico As the threat of the Hurricane Beryl and weak demand from Chinese consumers.
The futures of the Brent were up 19 cents, or 0.2%, at $84.85 a barrel after falling 1.3% in the previous session. While U.S. crude West Texas Intermediate (WTI) Oil rose 28 cents, or 0.3%, to $81.69 a barrel, after falling 1.1% in the previous session. Both benchmarks ended the previous three sessions lower on signs that the energy industry in Texbas emerged relatively unscathed from Hurricane Beryl, which hit the region on Monday.
The iUS crude oil and gasoline inventories fell by 1.923 million barrels and 2.954 million barrels, respectively, according to market sources citing Tuesday’s figures. American Petroleum Institute (API). In any case, the operators were waiting for the official data from the Energy Information Administration from the United States, which will be published this afternoon.
Oil and gas companies resumed some operations Tuesday after the hurricane threat passed. Some ports reopened and most producers and facilities were ramping up production, although some facilities were damaged and power has not yet been fully restored.
Geopolitical factors influence oil prices
In Middle East, Meanwhile, negotiations to ensure a ceasefire in the war in Loop will resume in Doha, with the assistance of intelligence chiefs Egypt, United States and Israel; which could have a downward impact on references.
Concern about the demand in China also weighed on prices, as consumer prices in the world’s second-largest economy rose for a fifth consecutive month in June, but fell short of expectations, while the deflation of producer prices.
For his part, the comments of the president of the United States Federal Reserve (Fed), Jerome Powellsuggested that the case for cutting interest rates is becoming stronger. Some interest rates Lower prices should stimulate economic growth and therefore oil consumption.
Following Powell’s comments, investors continued to bet on a near 70% chance that the Fed will cut rates in September, CME’s FedWatch tool showed.
Source: Ambito
