Oil edges higher on likely US inventory drawdown

By Ahmad Ghaddar

LONDON (Reuters) -Oil prices rose on Wednesday on expectations that U.S. crude and gasoline inventories fell last week, but further gains were limited by the restart of output in the U.S. Gulf as the threat from Hurricane Beryl faded and slack Chinese consumer demand.

Brent futures were up 19 cents, or 0.2%, at $84.85 a barrel at 1013 GMT, after falling 1.3% in the previous session.

U.S. West Texas Intermediate (WTI) crude was up 28 cents, or 0.3%, to $81.69 a barrel, after falling 1.1% in the previous session.

U.S. crude oil and gasoline inventories fell by 1.923 million barrels and 2.954 million barrels, respectively, according to market sources who cited American Petroleum Institute figures on Tuesday. [API/S]

Official data from the U.S. Energy Information Administration will be released at 1430 GMT. [EIA/S]

Both contracts ended the previous three sessions lower on signs that the Texas energy industry came off relatively unscathed from Hurricane Beryl after it lashed the region on Monday.

Oil and gas companies restarted some operations on Tuesday. Some ports reopened and most producers and facilities were ramping up output, although some facilities sustained damage and power has not been fully restored yet.

“The latest bout of selling can be attributed to two major factors: the potential revival of truce talks between Israel and Hamas and Hurricane Beryl,” PVM Oil analyst Tamas Varga said.

In the Middle East, negotiations to secure a ceasefire in the Gaza war will resume in Doha, with the intelligence chiefs of Egypt, the United States, and Israel in attendance.

Concerns over demand in China also weighed on prices as consumer prices in the world’s second-largest economy grew for a fifth month in June, but missed expectations, while producer price deflation persisted.

Meanwhile, comments from U.S. Federal Reserve Chair Jerome Powell suggested the case for interest rate cuts is becoming stronger.

Lower interest rates should spur economic growth, and therefore, oil consumption.

Following Powell’s comments, investors continued to bet on a nearly 70% chance the Fed will cut rates in September, the CME’s FedWatch tool showed.

This post is originally published on INVESTING.

  • Related Posts

    Oil falls after Trump reverses Colombia sanctions threat

    By Anna Hirtenstein LONDON (Reuters) -Oil prices wavered on Monday after the U.S. and Colombia reached a deal on deportations, reducing immediate concern over oil supply disruptions but keeping traders…

    Dollar gains on tariffs fears; euro looks to ECB meeting

    Investing.com – The US dollar slipped lower Monday, rebounding after recent losses as attention returned to the potential for trade tariffs from the Trump administration at the start of a…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    CySEC Tightens Oversight: AI, Crypto, and Fin-Fluencers Face Tougher Scrutiny

    • February 12, 2025
    CySEC Tightens Oversight: AI, Crypto, and Fin-Fluencers Face Tougher Scrutiny

    Day Trading vs. Long-Term Investing: Which is Better for You?

    • February 12, 2025
    Day Trading vs. Long-Term Investing: Which is Better for You?

    Thailand’s Border Blackout Forces Scam Gangs to Free 261 Captives: Report

    • February 12, 2025
    Thailand’s Border Blackout Forces Scam Gangs to Free 261 Captives: Report

    Apple (AAPL) Stock Forecast for 2025, 2026, 2027–2030 and Beyond

    • February 12, 2025
    Apple (AAPL) Stock Forecast for 2025, 2026, 2027–2030 and Beyond

    If You’re a Night Owl, Firstrade 24/7 Stock Trading May Be for You

    • February 12, 2025
    If You’re a Night Owl, Firstrade 24/7 Stock Trading May Be for You

    eToro Expands UK Offerings With New DIY Investment Option for Individual Saving Accounts

    • February 12, 2025
    eToro Expands UK Offerings With New DIY Investment Option for Individual Saving Accounts