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

Oil extends rally, rises over 1% on U.S. fuel demand recovery

CommoditiesAug 25, 2021 03:41PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A pump jack stands idle in Dewitt County, Texas January 13, 2016. REUTERS/Anna Driver

By Stephanie Kelly

NEW YORK (Reuters) -Oil prices rose more than 1% on Wednesday, extending gains for a third session, after U.S. government data showed that fuel demand climbed to its highest since the start of the COVID-19 pandemic.

Brent crude rose $1.20, or 1.7%, to settle at $72.25 a barrel. U.S. West Texas Intermediate (WTI) crude gained 82 cents, or 1.2%, to end at $68.36 a barrel.

U.S. gasoline futures rose 5.5% to settle at $2.3008 a gallon. During the session, prices reached $2.3026 a gallon, their highest since Aug. 12.

The four-week average for U.S. total product supplied, a proxy for fuel demand, soared to nearly 21 million barrels per day, its highest since March 2020, when governments first began to widely impose pandemic-related restrictions, U.S. Energy Information Administration data for last week showed. [EIA/S]

Refiners have ramped up production to 92.4% of operable capacity, the highest since late June, helping send U.S. crude inventories to the lowest since January 2020.

Last week, crude inventories fell by 3 million barrels to 432.6 million barrels, their lowest since January 2020, the EIA said.

U.S. gasoline stocks fell 2.2 million barrels, exceeding analysts' expectations for a 1.6 million-barrel drop.

"Gasoline inventories have drawn as implied demand has rebounded, perhaps the last hurrah of summer driving season," said Matt Smith, director of commodity research at ClipperData.

Over the last three sessions, both Brent and WTI have risen around 10%. The rally has mostly erased last week's slump that was triggered by a resurgence in COVID-19 cases.

The price gains came after Mexican supply fell by more than 400,000 barrels per day following a fire on Sunday at an oil platform. Mexico's state oil firm said it expected to resume production by Aug. 30.

"While volatility looks set to continue, we see further gains for oil as global economic normalization continues and OPEC remains disciplined on crude supplies," said Mark Haefele, chief investment officer at UBS Global Wealth Management.

The bank expects Brent to rise to $75 a barrel by December.

In a sign that the spread of infections from the coronavirus Delta variant was easing in China, the world's largest oil importer, the country reported just 20 new confirmed coronavirus cases for Aug. 24, down from 35 a day earlier.

The coronavirus pandemic, however, still looms large across the world, and many areas are battling the spread of the Delta variant, stoking doubts among investors about oil demand. Sydney's COVID-19 infections hit a daily record on Wednesday, despite two months of lockdowns in the city.

Oil extends rally, rises over 1% on U.S. fuel demand recovery
 

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 (3)
Bill Ackman
Bill Ackman Aug 25, 2021 11:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
US isnt under lockdown delta or not.US lockdown ended last year.
Rose Jin
Rose Jin Aug 25, 2021 11:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oil stocks are good hold now but you know how a single market can be slow, I came across Jason's comment here and I asked if I could pick his brains. He insisted I don't give up and get hands on authentic strategies like mirror trading.  Long story short, 2 years in mirror trading and I'm yielding 6M/yr. Thanks (sensei) as I call him.
perplexed76 .
perplexed76 . Aug 25, 2021 1:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"according to sources, who spoke on condition of anonymity." Shh! banksters make money on oil.
Aleksandr Jakovlev
Aleksandr Jakovlev Aug 25, 2021 1:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Let's get to that train! :)
 
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