New York’s West Texas Intermediate (WTI) crude futures ended negative on Wednesday (July 20) following US gasoline inventories rose more than expected last week. This indicates weaker demand in the US. Investors are also worried that the rate hikes by central banks might slow the economy. and affect the demand for oil
- The WTI crude oil contract was delivered in August. It was down $1.96, or 1.9%, at $102.26 a barrel.
- The Brent crude oil contract (BRENT) delivered in September. It was down 43 cents, or 0.4%, at $106.92 a barrel.
The U.S. Energy Information Administration (EIA) said gasoline inventories rose 3.5 million barrels last week. That was just 400,000 barrels more than analysts had expected.
Robert Yawker, an energy analyst at Mizuho, said: The surge in gasoline stocks is a worrying factor in the market. It is thought that part of the reason Americans are using less gasoline is the sharp rise in prices. In the past June Gasoline prices at service stations jumped to $5/gallon. Hit an all-time high
The EIA data also states that Crude stocks fell 400,000 barrels last week. While analysts expected a decline of 200,000 barrels, refined oil inventories. That includes heating oil and diesel, down 1.3 million barrels, while analysts expected a rise of 800,000 barrels.
In addition, the trading atmosphere in the oil market has also been pressured by concerns that Central banks around the world are raising interest rates to curb inflation. This might result in a slowdown in the global economy and affect oil demand.
For news regarding the movement of the Nord Stream 1 oil pipeline, foreign media reported, citing sources as saying. Russia will resume supply of natural gas to Europe via the Nord Stream 1 pipeline following maintenance is completed on July 21, following earlier concerns that Russia would not supply gas to Europe. Even following completing the maintenance on that day
The source revealed that Russia will resume normal gas supply to the EU, but below 160 million cubic meters per day. which is the level of gas transmission at the full potential of the said pipeline
The Nord Stream 1 pipeline supplies more than a third of Russia’s gas to Europe. It has performed annual maintenance since July 11 and is scheduled to be completed on July 21.
By InfoQuest News Agency (21 Jul 65)
