2023-06-29 22:28:04
Crude oil futures closed higher on Thursday (29th), extending the previous day’s gains. The day before, US official data showed that US domestic crude oil inventories fell by nearly 10 million barrels last week.
However, gains continued to be capped by hawkish comments from U.S. Federal Reserve Chairman Jerome Powell and other global central bankers on Wednesday, who see the need for continued tightening of monetary policy to bring inflation down, analysts said.
Energy commodity prices West Texas Intermediate (WTI) futures for August delivery rose 30 cents, or 0.4%, to settle at $60.86 a barrel, according toDow JonesMarket data, most recent month WTI Crude OilFutures have risen 2.6% so far this month. delivered in augustBrent Crude Oil (Brent) futures rose 31 cents, or 0.4%, to $74.34 a barrel. Delivered in SeptemberBrent Crude Oil (Brent) futures rose 27 cents, or 0.4%, to $75.51 a barrel, the most actively traded Brent futures. Gasoline futures for July delivery rose nearly 0.6% to settle at $2.62 a gallon. delivered in julyHot Fuel FuturesPrices rose 0.4 percent to $2.42 a gallon. Natural gas futures for August delivery rose 1.2% to settle at $2.70 per million Btu.market drivers
The U.S. Energy Information Administration (EIA) announced on Wednesday that U.S. commercial crude oil inventories fell by 9.6 million barrels last week (ending 6/23), encouraging WTI Crude OilClose up %,Brent Crude OilIt closed 2.5 percent higher. also,
The EIA report showed gasoline and distillate stockpiles rose by 600,000 barrels and 100,000 barrels last week, respectively.
Oil prices stabilized at support near 2023 lows after the EIA reported a drop in crude supply last week, said Tyler Richey, co-editor of Sevens Report Research. On the supply side, traders are focusing on demand amid a broad consensus that the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have “reached the limit” of their ability to cut production quotas further.
“Nevertheless, crude oil prices have been modestly up against a backdrop of lingering inflation concerns and hawkish comments from the Fed,” ING analysts wrote in a note. (Rate hikes could increase the chances of a recession, which could dent energy demand.)
Richey said the EIA report showed the four-week moving average of gasoline supplies, which can be used as a proxy for demand, rose to its highest level since November 2021.He pointed to strong consumer demand trends as one of the reasons why WTI oil has not fallen to new 2023 lows in recent weeks
Powell attended the European Central Bank’s Monetary Policy Forum on Wednesday and reiterated in a panel discussion that the vast majority of Fed officials expect two more interest rate hikes of one yard each this year. He also played down the idea that the Fed would shift to raising rates every other meeting, saying he was “not at all considering canceling back-to-back meetings.”
Oil prices were expected to rise on a monthly basis after Friday’s end, but are still down for the quarter so far.
At the same time, the EIA announced on Thursday that the supply of domestic natural gas inventories increased by 76 billion cubic feet last week (ended 6/23), which was slightly lower than analysts’ expectations. Partially lost ground.
Analysts were expecting an average build of 83 billion cubic feet, according to S&P Global Commodity Insights.
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