Oil prices inched up as US Crude stocks dropped
Shafaq news/ Oil prices inched up on, Wednesday, after a report demonstrated that crude stocks in the United States dropped further that what it was expected earlier. This is an indicator in the recovery of the demand on crude oil, despite the ongoing spread of Covid-19 all over the globe.
Global Brent crude rose by 31 cents to, equivalent to 0.8 percent, to reach $41.58 a barrel by 0632 GMT, after losing more than one percent on Tuesday. US crude rose 35 cents, or 0.9 percent, to reach 39.62 dollars a barrel after 1.1 percent losses in the previous session.
Data from the U.S. Petroleum Institute showed on Tuesday that crude oil and gasoline stocks in the United States fell short of expectations last week, while stocks of distillation products rose.
Crude stocks fell by 8.2 million barrels, to reach 537 million barrels; while analysts' expectations indicated a drop of 710,000 barrels only.
"Investors are keen to see whether the data from the US Energy Information Administration will confirm the data of the American Petroleum Institute or not. This contributes to the rise of crude markets despite the increasing concern over the spread of Coronavirus (Covid-19)".
OPEC's drop in oil production to its lowest level in two decades in June, also supported the prices rise.
A survey made by Reuters concluded that the 13 member states of the Organization of Petroleum Exporting countries (OPEC), averaged 22.62 million barrels per day in June; about $1.92 million a day down from the average of May.