Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Mc Canessa
Feb 08, 2023 3:28AM ET
Really 3% is stellar rally?
0
0
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Free Webinar - Master High-Probability Trades! | Tuesday, March 21, 2023 | 11:00AM PST Enroll Now
Oil prices dip as markets weigh U.S. inventory draw, supply disruptions
© Reuters.
By Ambar Warrick
Investing.com -- Oil prices fell on Wednesday following a stellar rally in the prior session, as traders stepped back to digest mixed signals on U.S. crude inventories and awaited more information on supply disruptions caused by an earthquake in Turkey.
Data from the American Petroleum Institute (API) showed that U.S. oil inventories unexpectedly shrank by 2.1 million barrels in the week to February 3. The reading heralds a similar trend in government data due later in the day, which is forecast to show an inventory build of 2.457 million barrels.
But the API data also showed that gasoline and distillate stockpiles grew in the past week, indicating that retail fuel consumption - a major driver of U.S. demand - still remained under pressure.
U.S. crude inventories expanded over the last six weeks, raising some concerns over demand in the world’s largest oil consumer, as it grapples with relatively high inflation and rising interest rates.
Brent oil futures fell 0.5% to $83.68 a barrel, while West Texas Intermediate crude futures fell 0.3% to $77.28 a barrel by 20:51 ET (01:51 GMT). Both contracts rallied over 4% on Tuesday.
Supply disruptions caused by a major earthquake in Turkey saw oil prices increase sharply this week. Recent media reports suggested that an Iraqi pipeline to Turkey’s Ceyhan oil export hub had resumed flows.
But exports of Azeri crude were still halted, amid much uncertainty over when supply would resume after a series of earthquakes battered Turkey earlier this week.
Mild weakness in the U.S. dollar benefited crude prices this week, as the greenback pulled away from recent highs on mixed signals on monetary policy from Federal Reserve Chair Jerome Powell on Tuesday. While Powell warned that interest rates could rise further due to strength in the jobs market, he acknowledged that the country was seeing some disinflation after a series of sharp rate hikes through 2022.
Fears of rising interest rates have been a key source of anxiety for crude markets this year, with traders fearing that an ensuing slowdown in economic growth could dent global crude demand.
But concerns over such a slowdown were offset by renewed optimism over a recovery in Chinese demand, after the world’s largest crude importer relaxed most anti-COVID restrictions earlier this year. The International Energy Agency expects global crude demand to hit record highs this year on a Chinese recovery.
Related Articles
Comments (4)
Mehar Alrind
Feb 08, 2023 12:17AM ET
It will be a huge fall cl - 1.26 which will touch 74.10
1
0
Tom Michaels
Feb 07, 2023 10:50PM ET
Fraud for sure, can't believe anything, especially the oil reports. mega world wide scam.
2
0
Mitchel Pioneer
Feb 07, 2023 9:20PM ET
What's in store for the US working class tomorrow, when the US Ponzi Scheme, greatest financial fraud in history, continues it's reign of financial terror?
2
0
Garrett Ogle
Feb 07, 2023 9:20PM ET
um.....I guess we all continue eating 🤣
1
0
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.