Oil slips as markets weigh China data, easing supply concerns

By Georgina McCartney

(Reuters) – Oil prices rebounded on Wednesday following three days of declines after an industry report showed U.S. crude and fuel stockpiles fell last week, indicating steady demand, and the outlook for interest rate cuts improved.

Brent futures rose 21 cents to $84.87 a barrel by 0055 GMT, after falling 1.3% in the previous session.

U.S. West Texas Intermediate (WTI) crude rose 26 cents to $81.67 a barrel, after falling 1.1% in the previous session.

WTI has dropped 3% in the previous three sessions amid concerns about flagging global oil demand and as signs appeared that the Texas energy industry came off relatively unscathed from Hurricane Beryl after it hit the region on Monday. Brent is down 3.2% over the same period.

U.S. crude oil and gasoline inventories fell last week, according to market sources citing American Petroleum Institute figures on Tuesday, indicating summer fuel demand is steady and driving the rebound after days of declines.

The API figures showed crude stocks were down by 1.923 million barrels in the week ended July 5, the sources said. Gasoline inventories fell by 2.954 million barrels. However, distillate supply rose by 2.342 million barrels.

Prices were also supported by comments from U.S. Federal Reserve Chair Jerome Powell that suggested the case for interest rate cuts is becoming stronger. Lower interest rates should spur more economic growth and therefore more oil consumption.

Following Powell’s comments investors continued to put a nearly 70% probability on a Fed rate cut in September.

“Powell’s remarks to the Senate affirmed the improvement in data through the June quarter, while maintaining that more good data would boost confidence in the inflation outlook,” ANZ analysts said in a note on Wednesday.

The outlook for higher oil prices was also supported by a U.S. Energy Information Administration (EIA) report on Tuesday showing global oil demand will outpace supply next year, reversing a prior forecast for a surplus.

In Texas, oil and gas companies restarted some operations on Tuesday after Hurricane Beryl lashed the state, while some facilities sustained damage and power had not been fully restored.

Beryl’s impact on oil and gas production was expected to be limited, and on Tuesday, some ports reopened and most producers and facilities were ramping up output.

Investors are expecting official U.S. oil stocks data on Wednesday at 10:30 a.m. EDT (1430 GMT) from the EIA.

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

    Exclusive: B2BROKER Extends cTrader Support as White Label Clients Surpasses 40

    • February 13, 2025
    Exclusive: B2BROKER Extends cTrader Support as White Label Clients Surpasses 40

    You Want to Trade at 3AM? Schwab Opens Round-the-Clock Trading Access for All Clients

    • February 13, 2025
    You Want to Trade at 3AM? Schwab Opens Round-the-Clock Trading Access for All Clients

    Webull Dares to Enter Prediction Markets Where Robinhood Failed

    • February 13, 2025
    Webull Dares to Enter Prediction Markets Where Robinhood Failed

    Short-Term Analysis for BTCUSD, XRPUSD, and ETHUSD for 13.02.2025

    • February 13, 2025
    Short-Term Analysis for BTCUSD, XRPUSD, and ETHUSD for 13.02.2025

    Euro Surges as Trump Fuels Optimism. Forecast as of 13.02.2025

    • February 13, 2025
    Euro Surges as Trump Fuels Optimism. Forecast as of 13.02.2025

    Short-Term Analysis for Oil, Gold, and EURUSD for 13.02.2025

    • February 13, 2025
    Short-Term Analysis for Oil, Gold, and EURUSD for 13.02.2025