2024-01-10 05:25:41
Oil enjoyed a second day of gains on Wednesday following an industry report showed a larger-than-expected reduction in crude inventories in the United States, the world’s largest oil user, strengthening the feeling of demand.
Brent crude futures were up 30 cents, or 0.4 percent, at $77.89 a barrel by 0524 GMT, while U.S. West Texas Intermediate oil futures were up 36 cents, or 0.5%, to $72.60 per barrel.
Oil gained regarding 2% in the previous session on supply concerns following reports of a
supply chain in Libya and ongoing regional tensions linked to the war between Israel and Gaza. However, Monday’s trading opened the week down more than 3%.
Renewal
attacks on shipping
in the Red Sea by the Yemeni Houthi militia in support of the Palestinians on Tuesday and potential disruptions to tanker flows in the region also supported prices.
“Oil prices are still hovering in a low range, but investors holding long positions are dominating the market mood at the moment,” Haitong Futures analysts said, referring to investors who buy futures contracts in the expectation of a price increase.
The “reduction in inventories last week may be more of a seasonal variation in inventories, but it helps ease downward pressure on oil prices,” they added.
U.S. crude oil inventories fell by 5.2 million barrels in the week ended Jan. 5, according to market sources citing American Petroleum Institute figures on Tuesday, as analysts estimated an increase of 700,000 barrels in a Archyde.com poll.
However, gasoline stocks rose by 4.9 million barrels, while distillate stocks gained 6.9 million barrels, higher than estimates of 2.5 million barrels and 2.4 million barrels. barrels respectively.
Data from the EIA, the statistical arm of the U.S. Department of Energy, is due at 10:30 a.m. EST (1530 GMT) Wednesday.
The EIA said on Tuesday that global consumption of liquid fuels is expected to increase by 1.4 million barrels per day (bpd) in 2024, compared to growth of 1.9 million bpd in 2023. Growth will be lower due to of China’s weakening economy, increasing vehicle fleet efficiency and the end of pandemic-related growth in 2023. (Reporting by Yuka Obayashi in Tokyo and Muyu Xu in Singapore (Editor: Gerry Doyle and Christian Schmollinger)
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