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Oil in the U.S. keeps a stable record
Author:Mariusz Dasiewicz
Oil on the New York fuel exchange maintains stable quotations, after two previous sessions with an increase in prices – a total of over 4%. Investors are analysing fuel stocks in the US and hope that the recovery of global demand for oil will "come to pass" despite the last wave of Covid-19, which forces tightening restrictions in many countries around the world," say brokers.
USAThe West Texas Intermediate oil supply for September at the NYMEX fuel exchange in New York City costs US$69.30, higher by 0.12%.
Gas on NYMEX, in future contracts, is valued at $2,3053 per gallon.
Oil Brent in deliveries for October on the ICE Futures Europe fuel exchange in London costs $71.51 per barrel, higher by 0.11%.
The investors learned official data on American oil stocks and products, published by the Department of Energy (DoE).
They show that oil stocks fell by 448,000 barrels last week, i.e. by 0.1% to 438.78 million barrels, while analysts expected their decline by 750,000 barrels.
In turn, gas stocks fell by 1.4 million barrels at that time, or 0.61% to 227.47 million barrels. This is their lowest level since November 2020 and already 4th in turn a weekly decline.
The reserves of distilled fuels, including fuel oil, increased by 1.77 barrels, i.e. by 1.27 percent to 140.51 million barrels," DoE said.
Meanwhile, U.S. President Joe Biden urged OPEC+ countries to increase their oil supply faster so that petrol prices would be more affordable for Americans.
"I want to make sure that nothing stands in the way of falling oil prices, which will cause lower prices for consumers," said Biden during his speech in the White House.
Biden did not indicate how quickly the OPEC+ group should reduce its oil production constraints.
Biden's statement "topped" a whole series of measures taken on Wednesday by his administration to address rising oil prices, as the White House sees rising inflation in the US as a threat to the rate of recovery.
Earlier, U.S. President's national security advisor, Jake Sullivan, stated in a statement that recent increases in oil production in OPEC+ "were simply insufficient".
Investors are following reports of the spread of the Delta coronavirus variant, but hope that in this difficult situation the demand for fuel will remain stable.
"If the epidemic spreads and sharpens rapidly, there is no doubt that, for example, China will exploit its plan of aggressive mass blockades," warns Jeffrey Halley, senior strategist in Oanda Asia Pacific Pte.
"This potential situation poses a threat to global oil prices," he adds.
WTI at NYMEX in New York City gained 4.2 percent in the previous 2 sessions.
Source: PAP
