Oil Edges Higher as Report Points to Shrinking U.S. Stockpiles



© Reuters.

(Bloomberg) — Oil edged higher after an industry report pointed to a decline in U.S. fuel and crude stockpiles, adding to signs of a tightening market.

Futures in New York rose 0.4% to trade near $72 a barrel after slipping for a second session on Tuesday. The American Petroleum Institute reported gasoline inventories slid by 6.23 million barrels last week, according to people familiar with the figures. That would be the biggest draw in motor fuel stockpiles since March if confirmed by government data later Wednesday.

Global inventories are expected to tighten through the rest of the year as key energy consumers continue to rebound from the pandemic, although the latest resurgence in Covid-19 is raising concerns about the short-term demand outlook. The fast-spreading delta variant has led to renewed restrictions in some regions, with oil set for only the second monthly loss since October.

The prompt timespread for was 96 cents a barrel in backwardation — a bullish market structure where near-dated contracts are more expensive than later-dated ones — on Tuesday. That compares with 58 cents a week earlier.

inventories fell by 4.73 million barrels last week, the API said. That would be the ninth draw in 10 weeks if confirmed by the Energy Information Administration Administration. Stockpiles will drop by 2.5 million barrels, a Bloomberg survey shows.

©2021 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

See also  Max Levchin's lending start-up Affirm confidentially files to go public

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here