Oil rates experience rebound over drop in US crude, fuel inventories
Date
7/10/2024 2:50:00 AM
(MENAFN) Oil rates experienced a rebound on Wednesday after three consecutive days of declines, prompted by a report indicating a drop in U.S. crude and fuel inventories last week. This development suggests stable demand and has bolstered expectations for potential interest rate cuts, according to a UK news agency. brent crude futures saw a modest increase of 21 cents, reaching USD84.87 a barrel by 0055 GMT, after experiencing a 1.3 percent decline in the previous trading session. Similarly, U.S. West Texas Intermediate (WTI) crude rose by 26 cents to USD81.67 a barrel, following a 1.1 percent drop in the prior session.
Over the past three sessions, WTI crude has seen a 3 percent decline, influenced by concerns regarding weak global oil demand and signs that the energy sector in Texas remained largely unaffected by Hurricane Beryl, which struck the region on Monday. During the same period, Brent crude experienced a 3.2 percent drop. Market sources reported on Tuesday that crude oil and gasoline inventories in the United States decreased last week, while distillate stocks saw an increase. These insights were based on data from the American Petroleum Institute.
The report underscores that the demand for summer fuel has remained steady, leading to a recovery in oil prices following several days of decline. According to the figures from the American Petroleum Institute, crude inventories fell by 1.923 million barrels in the week ending July 5. Meanwhile, gasoline stocks decreased by 2.954 million barrels, and distillate stocks rose by 2.342 million barrels. These changes reflect the dynamics of the market and the ongoing demand for fuel during the summer months.
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