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

Oil falls on U.S. crude stock build, Delta variant spread

CommoditiesAug 04, 2021 03:10PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A sticker reads crude oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, U.S. November 22, 2019. REUTERS/Angus Mordant/File Photo

By Scott DiSavino

NEW YORK (Reuters) -Oil prices fell for a third day in a row to a two-week low on Wednesday on a surprise build in U.S. crude stockpiles, negative U.S. economic report and worries the spread of the coronavirus Delta variant will weigh on global energy demand.

Traders noted the oil price drop came despite reports of increased Mideast geopolitical tensions.

Brent futures fell $2.03, or 2.8%, to settle at $70.38 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.41, or 3.4%, to settle at $68.15.

That was the lowest close for both benchmarks since July 20.

The U.S. Energy Information Administration (EIA) said crude stockpiles rose by an unexpected 3.6 million barrels last week, while gasoline inventories fell by a bigger-than-forecast 5.3 million barrels. [EIA/S]

"Crude prices remained heavy after the EIA crude oil inventory showed stockpiles unexpectedly rose last week," said Edward Moya, senior market analyst at OANDA, noting "the report was mixed as gasoline stockpiles fell more than expected."

With U.S. gasoline futures near their highest since October 2014, the gasoline crack spread - a measure of refining profit margins - closed at to its highest since hitting a record in April 2020 when WTI settled in negative territory.

Coronavirus cases worldwide surpassed 200 million on Wednesday, according to a Reuters tally, as the more-infectious Delta variant threatens areas with low vaccination rates and strains healthcare systems.

The United States and China, the world's two biggest oil consumers, are grappling with rapidly spreading outbreaks of the highly contagious Delta variant that analysts anticipate will limit fuel demand at a time when it traditionally rises in both countries.

The World Health Organization is calling for a halt on COVID-19 vaccine boosters until at least the end of September as the gap between vaccinations in wealthy and poor countries widens.

Also weighing on oil prices was a report from ADP showing U.S. private payrolls increased far less than expected in July.

Tensions in the Mideast Gulf, meanwhile, gave oil prices some support.

On Tuesday, three maritime security sources claimed Iranian-backed forces seized an oil product tanker off the coast of the United Arab Emirates, though Iran denied the reports.

Oman on Wednesday identified the Panama-flagged Asphalt Princess as the tanker involved in a hijacking which Britain's maritime trade agency earlier said was over.

This is the second attack on a tanker since Friday in the region, which includes the Strait of Hormuz. Britain and the United States are also blaming Iran for the earlier incident, in which drones crashed into the vessel and killed two sailors. Iran denies the reports.

Oil falls on U.S. crude stock build, Delta variant spread
 

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 (8)
Alan Rice
Alan Rice Aug 04, 2021 1:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
earthlings: DRIVING into The Abyss. Tic-toc.
Moni Rich
Moni Rich Aug 04, 2021 12:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What a fud and incomplete information
Zach Twist
Zach Twist Aug 04, 2021 10:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Theres no better way to manipulate a market then for china to release a delta variant. Trillions to be made crashing every single exchange
Scott Reyes
Scott Reyes Aug 04, 2021 9:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
keeps repeating the same danm story every day
Ronald Warren
Ronald Warren Aug 04, 2021 8:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yesterday the market closed up because of oil drawdown. Oil in the red. Manipulation on both sides. They say the economy is back to 2019 level, but markets are trading 25% higher.
Scott Reyes
Scott Reyes Aug 04, 2021 8:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Kelly Mayer
Kelly Mayer Aug 04, 2021 8:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
oil inventories keep dropping week after week... and oil is going further and further down during high demand summer season... while a no lockdowns policy has already been stated... makes perfect sense.
Shane Weddle
Shane Weddle Aug 04, 2021 7:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What a crock.
Babin YK
Babin YK Aug 04, 2021 3:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
sell after 3pm
 
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