Oil Edges Lower With Rising U.S. Fuel Stockpiles Stalling Rally - Bloomberg

alemonarki.blogspot.com

Oil extended declines as rising U.S. fuel stockpiles punctured the optimism on demand that drove crude to the highest since 2018 this week.

Futures in New York fell 0.8% after slipping back below $70 a barrel Wednesday. American gasoline inventories increased the most since April 2020 last week as refiners eager to boost output to meet an expected surge in consumption over summer left the country awash with fuel. A rolling average of demand ticked lower for the first time in a month, adding to the bearish sentiment.

Stockpiles of U.S. distillates -- a category that includes diesel -- also climbed, but it’s unlikely that a week of growing refined products will derail the broader market recovery, which has been underpinned by a robust rebound in demand from China to Europe. A Covid-19 resurgence in Asia has stunted the global recovery, although there are signs of improvement in the region.

Shrinking American crude stockpiles provided a hint of optimism to the otherwise bearish government data on Wednesday. Inventories slid by more than 5 million barrels last week, according to the Energy Information Administration, more than the median forecast in a Bloomberg survey.

The build in gasoline stockpiles is likely to be a “one-off” and there will be material draws during the driving season,” said Wayne Gordon, a strategist at UBS Wealth Management. “We continue to see incremental improvement on the mobility side, not just the U.S., but also in Europe.”

Prices
West Texas Intermediate for July delivery fell 0.8% to $69.41 a barrel on the New York Mercantile Exchange at 10:40 am in Singapore after declining 0.1% in the previous session. Brent for August settlement fell 0.8% to $71.64 a barrel on the ICE Futures Europe exchange after closing unchanged on Wednesday.

The market has continued to firm in a bullish structure. The prompt timespread for Brent was 49 cents in backwardation -- where near-dated prices are more expensive than later-dated ones. That compares with 38 cents on Monday.

See also: Iran Sees Most Oil Output Back One Month After Sanctions Removal

U.S. gasoline inventories rose by more than 7 million barrels for a second weekly gain, according to the EIA. Weekly gasoline supplied, which the U.S. government uses as a proxy of demand for the fuel, posted its biggest drop since February when the country was hit by an unprecedented polar blast.

Other market news:

Libya’s oil output is picking up again after a pipeline leak that caused a brief reduction was fixed. TC Energy Corp. ended its 16-year quest to build the Keystone XL pipeline, a controversial cross-border project that became a litmus test for climate activism and was blocked by President Joe Biden. Soaring temperatures in one of the world’s top energy-producing regions could drive fuel prices higher as countries there burn more oil and natural gas to keep homes cool.

Adblock test (Why?)

"fuel" - Google News
June 10, 2021 at 06:50AM
https://ift.tt/355b86L

Oil Edges Lower With Rising U.S. Fuel Stockpiles Stalling Rally - Bloomberg
"fuel" - Google News
https://ift.tt/2WjmVcZ


Bagikan Berita Ini