Oil rises after big draw in inventories

NEW YORK:

Oil prices rose on Thursday, rebounding from early losses after the US government data showed a much bigger drop than expected in crude and gasoline inventories.

Still, Brent prices remained $5 a barrel below Monday’s close, as traders were worried global crude supplies might swell following the collapse of negotiations between the Organisation of the Petroleum Exporting Countries and allies including Russia, a group known as OPEC+.

Brent crude oil futures rose 29 cents to $73.72 a barrel and US West Texas Intermediate futures rose 26 cents to $72.46 a barrel.

Early in the session, both contracts fell to their lowest in about three weeks. US crude inventories fell by 6.9 million barrels last week to 445.5 million barrels, Energy Information Administration data showed.

Analysts had expected a four million-barrel drop. Gasoline stocks fell by 6.1 million barrels in the week to 235.5 million barrels, the EIA said. Analysts had forecast a 2.2 million-barrel drop.

Published in The Express Tribune, July 9^th, 2021.

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