Oil prices rise on lower US inventories, recovering demand

Oil prices are rising with a decrease in oil stocks, especially in the United States, following the gradual recovery from the Corona epidemic.

  • Brent crude contract recorded $75.13 a barrel

Oil prices rose, today, Wednesday, recording monthly and quarterly gains, after US crude stocks fell for the sixth consecutive week, while a report by “OPEC” expected a tight supply in the market this year.

The August Brent crude contract, which expired today, ended the session up 37 cents, or 0.5%, to $75.13 a barrel.

The September contract rose 34 cents to be settled at $74.62 a barrel. And US crude rose 49 cents at the settlement, or 0.7%, to $ 73.47 a barrel.

Both benchmarks are slightly lower than their highest levels since 2018, and have posted their seventh monthly gain in the past eight months.

West Texas Intermediate crude rose more than 20% in June, while Brent rose more than 8%.

A Reuters poll showed that Brent is expected to average $67.48 a barrel this year and $64.54 for West Texas Intermediate crude, up from the May poll.

The US Energy Information Administration said that crude stocks in the United States fell for the sixth week in a row, as refiners ramped up production on the back of increased demand.

Crude stocks at the delivery center in Cushing, Oklahoma, fell to their lowest levels since March 2020, according to the Energy Information Administration.

The Organization of the Petroleum Exporting Countries and its allies, within the framework of the “OPEC +” group, meet tomorrow, Thursday. The group is expected to discuss extending its agreement on reducing oil supply beyond April 2022.

An internal report by “OPEC” seen by “Reuters” said that the oil market will be in a tight state in the short term, but a glut looms on the horizon once the “OPEC +” supply cuts end.

Hopes are received in big recovery A batch from OPEC Secretary-General Muhammad Barkindo, who said, on Tuesday, that demand is expected to rise by 6 million barrels per day in 2021, with 5 million barrels per day coming from it in the second half of the year.

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