Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil Down, but on Path for Weekly Gains Thanks to Strong Demand

CommoditiesJul 30, 2021 01:23AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – Oil was down Friday morning in Asia but was set to post solid gains as the week and month wraps up. Fuel demand is growing faster than supply, while vaccination rates dampened the impact of a resurgence in COVID-19 cases globally.

Brent oil futures fell 0.79% to $74.51 by 1:18 AM ET (5:18 AM GMT) after climbing 1.75% on Thursday. WTI futures were down 0.736 to $73.06, whittling down a 1.7% rise.

Both Brent and WTI futures were set for gains of around 2% for the week, over signs of tight crude supplies and strong fuel demand in the U.S., the world’s biggest oil consumer. Both the American Petroleum Institute and the U.S. Energy Information Administration reported a draw in U.S. crude oil supplies, with crude stocks at Cushing at their lowest since January 2020.

Even U.S. jet fuel consumption hit its highest level since March 2020, according to ANZ analysts.

"We've got stronger prices for a bit longer now, because it's a fundamental supply-demand issue in terms of the recovery in demand we're seeing in places like the U.S." Westpac senior economist Justin Smirk told Reuters.

Investors remain concerned about rising numbers of COVID-19 cases in the U.S., Asia and parts of Europe involving the Delta variant of the virus.

However, some said rising COVID-19 vaccination rates could limit the need for harsh restrictive measures that contributed to falling demand in 2020.

"I think the risks of the large shutdowns we saw in 2020 are much lower," said Smirk.

Indian gasoline consumption and industrial production also recorded a rapid rebound following a surge in COVID-19 cases in the country earlier in 2021.

"Yes, the COVID-19 Delta variant is a risk, but is it going to derail demand growth in the second half? We may not see that," Commonwealth Bank commodities analyst Vivek Dhar told Reuters.

Meanwhile, the Organization of the Petroleum Exporting Countries and allies (OPEC+) will start hiking monthly supplies by 400,000 barrels a day beginning in August. The hikes will continue until all OPEC+ production halted thanks to COVID-19 is revived, and it is expected that the market will be able to absorb these additional barrels as demand grows through the second half of 2021.

Oil Down, but on Path for Weekly Gains Thanks to Strong Demand
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Filipe Pereira
Filipe Pereira Jul 30, 2021 1:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hey Gina you are wrong. this oil market is stagnated and Will wall on sides as crabs do..
Bill Ackman
Bill Ackman Jul 30, 2021 1:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
3.5 million barrels of oil per day draw still there…Oil will continue to head higher…As soon as it touches 81 it will rocket above $90
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
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.
Continue with Google
or
Sign up with Email