Oil rises after sharp drop in U.S. crude inventories

Oil rises after sharp drop in U.S. crude inventories

Reuters  | Jul 01, 2020 03:18

Oil rises after sharp drop in U.S. crude inventories

TOKYO, July 1 (Reuters) - Oil prices rose on Wednesday after
an industry report showed crude inventories in the United States
fell much more than expected, suggesting demand is improving
even as the coronavirus outbreak spreads around the world.
Brent crude LCOc1 rose 33 cents, or 0.8%, to $41.60 a
barrel by 0044 GMT after declining more than 1% on Tuesday. U.S.
crude was up 42 cents, or 1.1%, at $39.69 a barrel, having
dropped by 1.1% in the previous session.
U.S. crude and gasoline stocks declined more than expected
last week, while distillate inventories rose, data released by
the American Petroleum Institute (API) late on Tuesday showed.
Crude inventories dropped by 8.2 million barrels to 537
million barrels, against analysts' forecasts for a draw of
710,000 barrels.
"If the API estimates are vetted by the official government
agency data due out tomorrow, this will be viewed as a definite
bullish signal," said Stephen Innes, chief global markets
strategist at AxiCorp.
"The reports could go a long way to easing some of those
lingering inventory concerns," he said.
Inventory data from the U.S. government's Energy Information
Administration is due out later on Wednesday.
Still prices are likely to be capped, analysts said, as the
world is awash with oil after the coronavirus caused demand for
fuel to drop by around a third.
A Reuters poll of analysts indicated that oil prices will
consolidate at around $40 a barrel this year, with a recovery
potentially picking up in the fourth quarter. The virus continues to spread around the world with ever
increasing rates of infection. Cases now total more than 10
million with more than half a million people dying after
catching COVID-19.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

More markets insights, more alerts, more ways to customize assets watchlists only on the App

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.