Oil rises, still kept in check by virus threat
Oil rose in Asia on Wednesday as a draw in US crude supplies boosted expectations that demand will overcome supply growth. However, rising numbers of coronavirus cases worldwide have dampened oil’s gains.
Brent oil futures climbed up 0.65% to $74 by 11:26 PM ET (3:26 AM GMT) following a 2-cent dip in its first decline in six days during the previous session. Meanwhile, WTI futures jumped 0.77% to $72.20, recovering from its 0.4% setback on Tuesday.
On the data front, the US crude oil supply figures released on Tuesday from the American Petroleum Institute (API) showed a draw of 4.728 million barrels for the week. Investors are now awaiting data on crude oil supply from the US Energy Information Administration, due to be released within the day. The API has also reported a drop in gasoline inventory of 6.226 million barrels.
Meanwhile, inventories are expected to tighten worldwide through the remainder of the year as the markets of key countries continue to recover from the pandemic.
However, the increase in the number of COVID cases due to the Delta variant has prompted many countries to bring back restrictions and oil is facing its second monthly loss since October of last year.