Oil slips on lacklustre US gasoline demand

Oil prices slipped on Wednesday, after US government data showed lower gasoline demand during the peak summer driving season and as interest rate hikes by central banks to fight inflation fed fears the economy could slow, cutting energy demand.

However, prices pared losses during the session after TC Energy said that the Keystone pipeline, one of Canada’s major oil export arteries, was operating at reduced rates for a third day on Wednesday.

Repairs continued on a third-party power facility in South Dakota, prompting concerns about tighter supplies.

Brent crude prices for September fell 42 cents to $106.93 a barrel by 1644 GMT. US West Texas Intermediate (WTI) crude for August fell 2 cents to $104.20 a barrel. The WTI contract expires on Wednesday.

The more active September WTI contract was at $100.20 a barrel, down 54 cents.

Published in The Express Tribune, July 21^st, 2022.

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