Oil floats above $73 as declining U.S. stockpiles tighten market
Oil floated above $73 a barrel as declining U.S. crude and fuel stockpiles compounded to bullish outlook around the global demand recovery.
New York’s oil futures remained steady, advancing 0.3% on Wednesday. Gasoline inventories surprisingly fell in the previous week, while crude stockpiles dropped for a fifth week in a row, the longest drop since January.
The plunge tightened the market even more as North America, China, and some parts of Europe bounced back from the pandemic drag.
Fuel consumption went up as inoculation programs rolled out worldwide, even aiding to drain stockpiles that were built up during the height of the pandemic. The OPEC+ alliance is set to convene later next week to discuss its production policy for August and some nations are considering backing an output increase.
Based on the data from the Energy Information Administration released on Wednesday, U.S. crude stockpiles dropped by 7.6 million barrels last week, while inventories at the storage hub of Cushing fell for a second week.
Gasoline supplies declined 2.9 million barrels.