On Thursday, Brent crude oil prices exceeded $75 a barrel as crude inventories in the United States, the world’s largest oil consumer, fell to their lowest level since January 2020.
West Texas Intermediate (WTI) crude futures rose 33 cents, or 0.5%, to $72.72 per barrel, while Brent crude futures rose 36 cents, or 0.5%, to $75.10 per barrel.
Brent surpassed $75 a barrel for the first time in more than two years in June, but fell sharply earlier this month as fears over the rapid spread of the Delta variant and leading OPEC producers reached a compromise to increase supply.
The U.S. Energy Information Administration (EIA) said crude oil inventories fell by 4.1 million barrels in the week of July 23, supported by lower imports and a drop in weekly output.
Gasoline stocks also fell, largely to pre-pandemic levels.
Declines in oil inventory indicate that the increase in COVID-19 Delta variant cases has not had much of an impact on mobility.
The Fed said in a policy statement that remained upbeat and pointed to ongoing negotiations on the eventual withdrawal of monetary policy support, things are on track for the US economic recovery despite the rise in coronavirus infections.
Markets have already suffered from this mobility constraint several times, but the global recovery has not derailed significantly, while risk to the demand outlook increases as European countries reduce their permits for public physical interaction.
Still, some concerns about fuel demand remain as gasoline demand begins to plateau in the United States and Europe. Analysts note that globally, pre-pandemic demand levels may not be seen until beyond next year if coronavirus infections and the slow pace of vaccinations further entrench structural changes in demand.
The countries with the world’s highest weekly COVID19 death rates are Argentina, Colombia, Cuba, Ecuador and Paraguay, threatening the Americas.
