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

Oil Up Over Draw in U.S. Crude Inventories, Bright OPEC Fuel Demand Outlook

CommoditiesMay 12, 2021 01:15AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – Oil was up Wednesday morning in Asia after data showed a larger-than-expected draw in U.S. crude supplies and the Organization of the Petroleum Exporting Countries (OPEC) remained to be optimistic about the outlook for fuel demand.

Brent oil futures inched up 0.09% to $68.61 by 13:09 AM ET (5:09 AM GMT) and WTI futures edged up 0.18% to $65.40.

Tuesday’s U.S. crude oil supply data from the American Petroleum Institute showed a draw of 2.533 million barrels for the week ending May 7. Forecasts prepared by Investing.com predicted a 2.250-million-barrel draw, while a 7.688-barrel draw was recorded during the previous week.

Investors now await crude oil supply data from the U.S. Energy Information Administration, due later in the day.

The draw came before the closure of Colonial Pipeline’s networks after a cyberattack during the previous week. The operator is hoping to re-open a large part of the network by the end of the week.

On the demand side, OPEC continued to expect a strong fuel demand recovery in 2021 as China and the U.S. continue their economic recoveries from COVID-19.

"Crude oil gained as investors continue to bet on a bright outlook for demand. A weak dollar also lent support," ANZ Research analysts said in a note.

The cartel maintained its forecast of an increase of 5.95 million barrels per day (bpd) but cut its demand expectations for the second quarter by 300,000 as the number of COVID-19 cases continues to surge in India, the third-largest oil importer globally.

"India is currently facing severe COVID-19-related challenges and will therefore face a negative impact on its recovery in the second quarter, but it is expected to continue improving its momentum again in the second half of 2021," OPEC said in its monthly report.

Oil Up Over Draw in U.S. Crude Inventories, Bright OPEC Fuel Demand Outlook
 

Related Articles

Gold: Another Week, Another Struggle at $1,900
Gold: Another Week, Another Struggle at $1,900 By Investing.com - Jun 11, 2021 8

By Barani Krishnan Investing.com - The gold speculator, whether bull or bear, may have found the perfect play for now: Buy at near $1,850 and sell well before $1,900. The $40 to...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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.
 
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