Oil prices increase amid falling U.S. inventories
Date
7/25/2024 5:44:24 AM
(MENAFN) On Wednesday, oil prices closed higher, marking an end to three consecutive sessions of decline. This uptick was driven by a significant reduction in U.S. crude and fuel inventories, alongside increased supply risks due to wildfires in Canada. Despite this recovery, prices stayed near six-week lows, primarily due to ongoing concerns about weak global demand.
Brent crude futures for September delivery increased by 70 cents, or 0.9 percent, closing at USD81.71 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude for September delivery rose by 63 cents, or 0.8 percent, settling at USD77.59 per barrel. The rise in prices was supported by data from the Energy Information Administration (EIA), which reported a 3.7 million barrel decline in U.S. crude inventories for the past week. This decrease was significantly larger than the 1.6 million barrel drop anticipated by analysts.
The EIA also reported a 5.6 million barrel reduction in gasoline stocks, which was far greater than the 400,000-barrel draw expected. Distillate stockpiles, which include diesel and heating oil, fell by 2.8 million barrels, surpassing the anticipated 250,000-barrel increase. Despite these bullish inventory reports, the market remained cautious, influenced by global factors such as ceasefire discussions in Gaza and ongoing concerns about an economic slowdown in China, the world's largest crude importer. These issues continue to cast a shadow over global oil demand, keeping prices under pressure.
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