Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Free Webinar - Webinar: Simplify Options Trading | Thursday, September 28, 2023 | 08:00PM EDT Enroll Now
Oil Down Over Fed Decision Surprise, U.S. Supply Draw Limits Losses
Published Jun 16, 2021 11:49PM ET
© Reuters.
By Gina Lee
Investing.com – Oil was down Thursday morning in Asia, with a strengthening dollar exerting pressure on the black liquid. However, a bigger-than-expected draw in U.S. crude oil supplies stemmed losses for the black liquid.
Brent oil futures fell 0.56% to $73.97 by 11:47 PM ET (3:47 AM GMT) and WTI futures were down 0.53% to $71.77.
Investors also continued digesting the U.S. Federal Reserve's latest policy decision, handed down on Wednesday.
"Energy markets became so fixated over a robust summer travel season and Iran nuclear deal talks that they somewhat got blindsided by the Fed's hawkish surprise," OANDA senior market analyst Edward Moya told Reuters.
"The Fed was expected to be on hold and punt this meeting, but they sent a clear message they are ready to start talking about tapering and that means the dollar is ripe for a rebound which should be a headwind for all commodities,” he added. The greenback surged to its strongest single-day gain in 15 months on Thursday.
However, U.S. crude oil supply data from the U.S. Energy Information Administration (EIA) limited the oil’s losses.
The EIA data showed a draw of 7.355 million barrels for the week to Jun. 11. The draw was bigger than the 3.290-million-barrel draw in forecasts prepared by Investing.com and the 5.241-million-barrel draw recorded during the previous week. Refineries also boosted operations to their highest level since January 2020 in a sign that the fuel demand outlook continues to improve.
Crude oil supply data from the American Petroleum Institute the day before showed a draw of 8.537 million barrels.
Also giving oil a boost, refinery throughput in China, the world's top oil importer, rose to a record high of 4.4% in May from the same month in 2020.
"This pullback in oil prices should be temporary as the fundamentals on both the supply and demand side should easily be able to compensate for a rebounding dollar," said Moya.
Related Articles
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
Add a Comment
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.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.