Ana sayfa » Oil rises on expectations that US crude and gasoline stocks will fall

Oil rises on expectations that US crude and gasoline stocks will fall

Gains were limited as hurricane threat receded and consumer demand in China slowed

by BUNKERIST

Oil prices rose Wednesday on expectations that U.S. crude and gasoline inventories fell last week. However, gains were limited as the hurricane threat receded, consumer demand in China slowed, and production resumed in the US Gulf.

Brent futures rose 19 cents, or 0.2 percent, to $84.85 a barrel at 10:13 GMT, after falling 1.3 percent in the previous session. WTI crude rose 28 cents, or 0.3%, to $81.69 a barrel, after falling 1.1% in the previous session.

US crude oil and gasoline inventories fell by 1.923 million barrels and 2.954 million barrels, respectively, according to market sources citing figures from the American Petroleum Institute (API) on Tuesday.

Official data from the US Energy Information Administration will be released at 14:30 GMT.

Both contracts ended the previous three sessions lower on signs that the Texas energy sector emerged relatively unscathed from Hurricane Beryl, which hit the region on Monday.

Oil and gas companies resumed some operations on Tuesday, while some ports reopened and most facilities increased production. However, some facilities were damaged and electricity has not yet been fully restored.

The latest wave of selling can be attributed to the potential resurgence of ceasefire talks between Israel and Hamas and Hurricane Beryl.

In the Middle East, negotiations for a ceasefire in the Gaza war will restart in Doha with the participation of Egypt, the USA, and Israel.

Concerns about demand in China also weighed on prices; Although consumer prices in the world’s second largest economy grew for the fifth month in June, they failed to meet expectations and deflation in producer prices continued.

Meanwhile, US Federal Reserve Chairman Jerome Powell’s comments pointed out that interest rate cuts are getting stronger. Low interest rates stimulate economic growth and therefore oil consumption.

Following Powell’s comments, investors say there is approximately a 70% chance that the Fed will cut interest rates in September.