Crude oil inventories in the United States increased by 5.5 million barrels in the last weekthe Energy Information Administration said, above the expected increase of 73,000 barrels.
Nevertheless, Gasoline stocks fell sharply as implied demand rose after weeks of lackluster activity during what is supposed to be peak summer driving season.
Meanwhile, consumer prices were unchanged in July due to a sharp drop in the cost of gasoline, giving the first notable sign of relief for Americans who have seen inflation rise in the past two years.
That contributed to a rise in risk assets, including stocks, while the dollar fell more than 1% against a basket of currencies. Since most oil sales around the world are in dollars, the weakening of the US currency supports crude oil. However, the gains on a barrel were modest.
“There’s not a lot of bullishness in the market. With this kind of dollar weakness, crude should be seeing a $2-3 rise and it’s not,” said Eli Tesfaye, senior market strategist at RJO Futures in Chicago. .
The market fell earlier as flows resumed on the Druzhba pipeline from Russia to Europe.
Russian state pipeline monopoly Transneft has restarted oil flows through the southern section of the Druzhba pipeline. Ukraine had suspended Russian pipeline flows to parts of central Europe this month because Western sanctions prevented it from receiving transit payments from Moscow, Transneft said on Tuesday.
Source: Ambito
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