Oil Up Over Draw in U.S. Crude Inventories, Bright OPEC Fuel Demand Outlook



© Reuters.

By Gina Lee

Investing.com – Oil was up Wednesday morning in Asia after data showed a larger-than-expected draw in U.S. crude supplies and the Organization of the Petroleum Exporting Countries (OPEC) remained to be optimistic about the outlook for fuel demand.

inched up 0.09% to $68.61 by 13:09 AM ET (5:09 AM GMT) and edged up 0.18% to $65.40.

Tuesday’s U.S. showed a draw of 2.533 barrels for the week ending May 7. Forecasts prepared by Investing.com predicted a 2.250-million-barrel draw, while a 7.688-barrel draw was recorded during the previous week.

Investors now await , due later in the day.

The draw came before the closure of Colonial Pipeline’s networks after a cyberattack during the previous week. The operator is hoping to re-open a large part of the network by the end of the week.

On the demand side, OPEC continued to expect a strong fuel demand recovery in 2021 as China and the U.S. continue their economic recoveries from COVID-19.

“Crude oil gained as investors continue to bet on a bright outlook for demand. A weak dollar also lent support,” ANZ Research analysts said in a note.

The cartel maintained its forecast of an increase of 5.95 million barrels per day (bpd) but cut its demand expectations for the second quarter by 300,000 as the number of COVID-19 cases continues to surge in India, the third-largest oil importer globally.

“India is currently facing severe COVID-19-related challenges and will therefore face a negative impact on its recovery in the second quarter, but it is expected to continue improving its momentum again in the second half of 2021,” OPEC said in its monthly report.

READ  Trump says US and China 'very close' to trade deal
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.

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