Oil Prices Perk Up on Crude Draw

Source The Ghana Report

Crude oil prices went higher today, after the U.S. Energy Information Administration reported an inventory draw of 3.4 million barrels for the week to July 5.

This compared with a massive draw of 12.2 million barrels for the previous week.

The American Petroleum Institute reported on Tuesday an estimated inventory draw of 1.9 million barrels for the week to July 5, strengthening the perception of a strong peak demand season in the world’s largest consumer of the commodity.

The EIA, meanwhile, also reported mixed changes in fuel inventories for the week to July 5.

In gasoline, the agency estimated an inventory decline of 2 million barrels for the first week of July, with production at 10.3 million barrels daily.

This compared with an inventory decline of 2.2 million barrels for the last week of June, when production of gasoline averaged 10.1 million barrels daily.

In middle distillates, the authority estimated an inventory build of 4.9 million barrels for the week to July 5, with production averaging 5.1 million barrels daily.

This compared with an inventory draw of 1.5 million barrels for the previous week, when production of the fuel averaged 5.1 million barrels daily.

Oil prices, meanwhile, dipped earlier today following the release of weaker than expected economic data from China. The data in question was June inflation, which came in lower than expected, fueling worry about consumer demand in the world’s largest oil importer. Be that as it may, prices increased for the fifth month in a row, at 0.2%, from May’s 0.3%.

Benchmarks remained depressed even after OPEC released its latest monthly report, reiterating expectations of robust demand for the commodity, keeping its growth forecast at 2.2 million bpd this year.

?il prices also lost the temporary upward potential offered by Hurricane Beryl after oil companies with Gulf Coast operations signaled they had weathered the storm with little damage.

Earlier in the day, prices had inched higher following a Fed chairman testimony in Senate, which reinforced expectations of a rate cut later in the year although Jerome Powell signaled the central bank will not rush into cuts until it was confident the economy could handle them.

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