Oil up as US draw hits low
Oil rose in Asia on Thursday morning, as the latest data from the US showed a draw in the country’s crude oil supplies to their lowest level since January of the previous year.
Brent oil futures jumped 0.34% to $74.12 by 11:43 PM ET (3:43 AM GMT) while WTI futures increased by 0.37% to $72.66, both staying above the $70 mark.
On the data front, the US Energy Information Administration (EIA) has shown on Wednesday a draw of 4.089 million barrels in the week to July 23. Meanwhile, crude oil supply data released by the American Petroleum Institute on the previous day showed a draw of 4.728 million barrels.
The EIA data have also shown a larger-than-expected 2.253-million-barrel draw in gasoline inventories. However, fuel demand continues to worry investors as gasoline demand in the US and Europe begins to decline.
Still in the US, the Fed has also stated that the country’s economic recovery is still on track in spite of the increase in the number of daily coronavirus cases. The central bank made the pronouncement as it handed down its latest policy decision on Wednesday.
Fuel demand is not expected to recover to its pre-covid levels until 2022 if the number of coronavirus cases continues to rise, and the rate of vaccination continues to lower.