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21/06/24
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Oil Prices to Record Second Consecutive Weekly Gains
On June 21, there were no significant movements in crude oil futures while they were on their way to ending the week with gains. There are signs that demand is improving while oil and fuel inventories are declining in the United States.
Around 7 am (GMT), Brent futures for August declined by 17 cents to $85.52 per barrel following about 0.8 percent gains in the past session. Likewise, U.S. West Texas Intermediate crude futures for August delivery fell by 13 cents to $81.14 a barrel. On June 20, the expiry of the July contract was at $82.17, representing a 0.7 percent gain.
There has been an almost 5 percent increase in prices to high levels seen more than seven weeks ago since this month started.
A note by Citi analysts expressed the market situation, noting factors that may strengthen prices into the summer, including an increase in seasonal demand based on recent data from the Energy Information Administration (EIA), revived confrontation between Hezbollah and Israel, as well as the hurricane season.
According to data released by the United States government on June 20, the aggregate product supplied which is a proxy for the nation’s oil demand increased by 1.9 million bpd last week.
EIA data revealed that there was 2.5 million barrels increase in United States crude stockpiles’ drawdown during the week relative to the expected 2.2 million barrels draw. Likewise, there was a 2.3 million barrels fall in gasoline inventories relative to the expected 600,000 barrels build.
ANZ Research analysts said sentiment was improved by signs of stronger demand in Asia, noting that “oil refineries across the region are bringing back some idled capacity after maintenance”.
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