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Oil Down as Investors Digest Surprise Build in U.S. Crude Supplies

CommoditiesJul 21, 2021 01:43AM ET
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© Reuters.

By Gina Lee

Investing.com – Oil was down Wednesday morning in Asia, with investors digesting a surprise build in U.S. crude oil supplies and continuing to assess the impact of surging COVID-19 cases on fuel demand.

Brent oil futures were down 0.46% to $69.03 by 1:38 AM ET (5:38 AM GMT) and WTI futures fell 0.51% to $66.86.

U.S. crude oil supply data from the American Petroleum Institute released on Tuesday showed a build of 806,000 barrels for the week ended Jul. 16. Forecasts prepared by Investing.com had predicted a draw of 4.167 million barrels, while a 4.079-million-barrel draw was recorded during the previous week.

Should the build be confirmed in crude oil supply data from the U.S. Energy Information Administration, due later in the day, it would be the first since May.

Oil has been on a downward trend ever since hitting its highest levels since 2014 earlier in the month. The number of COVID-19 cases involving the Delta variant has soared globally and the Organization of Petroleum Exporting Countries and allies (OPEC+) resolutions of its dispute means increased production from August 2021 onwards.

This led Goldman Sachs Group Inc. (NYSE:GS) to warn oil will “gyrate,” and push back forecasts for a rally to $80 a barrel.

Some investors remained cautiously optimistic, however.

“The damage to re-openings from the Delta variant has certainly dented sentiment across the board when we look at commodities in general, but specifically to the oil markets... still, we would expect that the demand for oil continues to remain relatively robust. And we would expect it to continue to recover,” UBS AG Wealth Management strategist Wayne Gordon told Bloomberg.

The black liquid’s losses were part of a widespread weakness across commodities, with gasoline, copper and iron ore also recording losses. The dollar, however, inched up on Wednesday, making commodities priced in the currency more expensive.

Oil Down as Investors Digest Surprise Build in U.S. Crude Supplies
 

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Comments (7)
Ayathandwa Mngwengwe
Ayathandwa Mngwengwe Jul 21, 2021 8:06AM ET
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Do u gyz think oil will be dropping at today's event due what is published here?
Eduff San
Eduff San Jul 21, 2021 5:55AM ET
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Totally fake news. Oil already up 1% more today. What do you mean down??
Edward Chong
Edward Chong Jul 21, 2021 5:55AM ET
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their report is 24hours ago. relax juz read with open mind. don't bother about the accuracy.
Jokers R Us
Jokers R Us Jul 21, 2021 5:53AM ET
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We are headed to $100 a barrel and beyond. Inflation is here to stay.
Marco henry
Marco henry Jul 21, 2021 5:53AM ET
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True but we don't when it's gonna happen though...
Rosh Jardine
RoshJardine Jul 21, 2021 5:25AM ET
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Just another signal for indices correction before possibly another ATH..true maniputation work
Michael Dell
Michael Dell Jul 21, 2021 4:39AM ET
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Oil isnt down
Michael Dell
Michael Dell Jul 21, 2021 4:17AM ET
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These aint investors,these are idiots
Iwan kadarusman
Iwan kadarusman Jul 21, 2021 2:44AM ET
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maybe $ 100
Joel Schwartz
Joel Schwartz Jul 21, 2021 2:44AM ET
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Maybe $10
 
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