Oil Rises as US Summer Demand Signs Outweigh IEA Estimate
by Bloomberg | Julia Fanzeres and Jordan Fitzgerald
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas
Oil edged higher as traders weighed the International Energy Agency’s estimate that demand growth is slowing against a US government report showing signs of strengthening fuel consumption after the Fourth of July holiday.
West Texas Intermediate bounced between gains and losses during a choppy session before settling 0.6% higher, topping $82 a barrel. Futures have moved within a roughly $4 range for the past three weeks. Volumes for the commodity have remained muted, coming in below their 100-day moving average, signaling the low liquidity typical of summer trading.
The IEA predicted that global oil demand growth will come in at less than 1 million barrels a day this year, partly due to China’s post-Covid rebound having run its course. The agency’s bearish tone conflicts with data showing US oil stockpiles fell by 3.44 million barrels last week, with gauges of jet fuel and gasoline consumption both rising as the summer travel season continues.
Crude has rallied about 18% this year, supported by OPEC+ supply cutbacks, although relatively muted moves have caused volatility to decline to multi-year lows this month. While some members of the cartel are continuing to pump above agreed limits, key producer Russia made noticeable reductions in June.
Prices:
- WTI for August delivery climbed 0.6% to settle at $82.62 a barrel in New York.
- Brent for September settlement rose 0.4% to $85.40 a barrel.
by Bloomberg | Julia Fanzeres and Jordan Fitzgerald
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas