The fall in crude oil inventories in the United States and the fires in Canada that threaten supply explain the increase.
The prices of the Petroleum rebounded on Wednesday, breaking three consecutive sessions of declines, due to the fall in crude inventories in USA already the increasing supply risks arising from the fires in Canada.
Crude oil futures Brent US crude oil prices for September were up 37 cents, or 0.5%, at $81.38 a barrel by early morning on the other side of the meridian. Meanwhile, US crude West Texas Intermediate (WTI) By September, it was up 38 cents, or 0.5%, at $77.34 a barrel. WTI had lost 7% in the previous three sessions, while Brent was down nearly 5%.
U.S. crude oil, gasoline and distillate inventories fell last week for the fourth consecutive week, according to market sources citing the American Petroleum Institute, reflecting stable demand in the world’s largest oil consumer.
Meanwhile, the fires in Canada They were also supporting prices, forcing some producers to cut output and threatening a large supply bulge, according to ING analysts. “The market is approaching oversold territory and we continue to believe that fundamentals support prices rising from current levels for the remainder of the third quarter on the back of a deficit environment,” ING analysts said in a note.
API figures showed crude stocks fell by 3.9 million barrels in the week ended July 19, the sources said, speaking on condition of anonymity. Gasoline stocks fell by 2.8 million barrels and distillate stocks fell by 1.5 million barrels. It would be the first time U.S. crude stocks have fallen for four straight weeks since September 2023. Official government data on oil inventories will be released on Wednesday.
On Tuesday, the prices of Petroleum fell to six-week lows, with the Brent closing at its lowest level since June 9, due to ceasefire talks between Israel and Hamaswithin the framework of a plan outlined by the American president Joe Biden in May and with the mediation of Egypt and Qatar. Prices were also affected by continued concerns that the economic slowdown in China, the world’s largest importer of crude oil, weaken global demand for Petroleum.
Source: Ambito
