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WTI rises as inventories fall
An oil pump is shown in a field in Stanton, Texas, on June 27, 2024.
Brandon Bell | Getty Images News | Getty Images
U.S. crude oil rose on Wednesday, hovering near $82 a barrel, as U.S. inventories dwindled while OPEC sees solid demand supported by stronger economic growth this year.
U.S. crude oil inventories fell by 3.4 million barrels last week, while gasoline stockpiles shrank by two million barrels, according to theand Energy Information Administration. But implied demand for oil, measured by products supplied to the market, fell by 334,000 barrels per day.
Bulls are looking for sustained drawdowns in U.S. inventories to confirm expectations that summer fuel demand will pick up after a lukewarm start to the season.
Here are today’s energy prices:
- West Texas Intermediate August contract: $81.94 a barrel, up 53 cents, or 0.65%. Year to date, U.S. crude has gained 14.3%.
- Brent September contract: $84.99 a barrel, up 33 cents, or 0.39%. Year to date, the global benchmark is ahead 10.2%.
- RBOB Gasoline August contract: $2.51 per gallon, down 1 cent, or 0.49%. Year to date, gasoline has risen 19.6%.
- Natural gas August contract: $2.32 per thousand cubic feet, down 2 cents, or 1%. Year to date, gas has fallen 7.7%.
Meanwhile, OPEC maintained its forecast for oil demand growth of 2.2 million barrels per day for 2024. The cartel revised global economic growth slightly higher this year to 2.9%, boosted by better-than-expected first-half performance in Brazil, Russia, India and China, as well as a recovery in the euro zone.
Oil’s recent rally stalled with prices falling for three straight days through Tuesday. Tamas Varga, an analyst at oil brokerage PVM, attributed the latest round of selling to revived ceasefire talks between Hamas and Israel, as well as Hurricane Beryl.
Oil infrastructure on the Gulf Coast appears to have avoided substantial damage from the storm, but the Port of Houston has been closed. Varga said the market can expect oil exports to decline as a result, which could lead to a build in inventories when the next round of data is released next week.