According to Reuters, oil prices increased on Thursday as gasoline inventories decreased, indicating increased demand, and as crude supplies decreased as US refineries increased processing.
By 9:20 a.m. Saudi time, Brent futures had increased by 62 cents, or 0.73 percent, to $85.70 per barrel. The price of a barrel of US West Texas Intermediate crude increased by 60 cents, or 0.73 percent.
According to Suvro Sarkar, head of DBS Bank’s energy sector team, “the bounce back is largely due to the continued drawdowns in US inventories as reported by the EIA,” referring to the Energy Information Administration.
In the week ending July 5, US oil stocks dropped by 3.4 million barrels to 445.1 million barrels, much above experts’ projections of a 1.3 million-barrel decline from a Reuters poll.
During the US Fourth of July vacation week, gasoline stockpiles dropped by 2 million barrels to 229.7 million barrels, a far larger decline than economists had predicted (600,000 barrels).
OPEC reiterated on Wednesday that robust economic growth and air travel would bolster gasoline use in the summer, maintaining its projection of relatively high rise in global oil demand in 2024 and the following year.
According to Sarkar, “there will probably be more bullish factors than bearish, supporting oil prices in the interim.”
Profits were however limited because storm Beryl barely affected supplies at refineries and offshore production sites.
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