The Star E-dition

OIL UP ON INVENTORIES DATA

OIL ROSE toward $75 (about R1 110) a barrel yesterday after data showed US crude inventories fell more sharply than analysts had forecast, bringing the market’s focus back to tight supplies rather than rising coronavirus infections.

Crude inventories fell by 4.1 million barrels in the week to July 23, the US Energy Information Administration said yesterday. Petrol and distillate fuel stocks also dropped.

“A rebound in implied demand for both gasoline and distillates, as well as lower refinery runs, has encouraged decent inventory draws for both,” said Matt Smith, director of commodity research at ClipperData.

Brent crude price rose 18 cents, or 0.2 percent, to $74.66 a barrel at 5.32pm, after posting on Tuesday its first decline in six days. US West Texas Intermediate (WTI) crude advanced 43c, or 0.6 percent, to $72.08.

Oil has risen 45 percent this year, helped by demand recovery and supply curbs by the Organisation of the Petroleum Exporting Countries and allies, known as Opec+.

Opec+ agreed to increase supply by 400 000 barrels a day from August, unwinding more of last year’s record supply cut, but this is seen as too low by some analysts given the rebound in demand expected this year.

A rising number of coronavirus cases worldwide, despite vaccination programs, has limited the upside for oil and remains a concern.

A statement from a US Federal Reserve policy meeting due last night was also in focus for investors.

The dollar was firmer ahead of the meeting, pressuring oil as it makes crude more expensive for other currency holders.

“We will be looking at today’s (last night’s) Fed comments later in the day to provide more significant support as we anticipate additional indications of loose monetary policy,” said Jim Ritterbusch, president of Ritterbusch and Associates in Illinois.

BUSINESS REPORT

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2021-07-29T07:00:00.0000000Z

2021-07-29T07:00:00.0000000Z

https://thestar.pressreader.com/article/281771337226673

African News Agency