NEW YORK: Oil prices edged higher at $76 a barrel on Thursday with global benchmark Brent as supplies tightened further after shrinking to the smallest level since January 2020 in the United States.
Brent crude oil futures edged higher by $1.31 a barrel, or 1.75%, at $76.05 a barrel. US West Texas Intermediate (WTI) crude futures were up $1.23, or 1.7%, at $73.62 a barrel.
Traders said Thursday that data from information provider Genscape indicated that inventory at the Cushing, Oklahoma storage hub continued to hold up. As of Tuesday afternoon, Cushing’s stock was seen at 36.299 million barrels, down 360,917 barrels since July 23.
The Cushing inventory data comes a day after the US Energy Information Administration (EIA) reported that domestic crude inventories declined by 4.1 million barrels in the week to July 23.
There have been seven consecutive stockpile draws at Cushing’s, the delivery point of the benchmark US oil futures contract.
“Crude oil is still trading higher on sugar than yesterday’s US inventory numbers,” said Bob Yeager, director of energy futures in Mizuho, New York. A weak US dollar and cues from Iran gave additional boost to the market. A nuclear deal was imminent, Yoger said.
In June, Brent topped $75 a barrel for the first time in more than two years, then followed earlier this month on fears about the rapid spread of the delta version of the coronavirus and a negotiated deal by major oil producers to boost supplies. slipped because of
The US economic recovery is still on track despite a rise in coronavirus infections, the US Federal Reserve said in a policy statement on Wednesday, which flagged ongoing talks about withdrawing monetary policy support.
The dollar fell a day after the Federal Reserve said it had yet to schedule a time to reduce its bond purchases.
The dollar index fell 0.41% to 91.882, last seen on June 29. A sluggish dollar raised the euro [EUR=] It rose 0.39% to $1.1888, its highest in more than 3 weeks. [USD/]
A weaker dollar could boost investor demand for dollar-denominated commodities, including crude.
Analysts at Citi said, “While risks to the demand outlook may increase as governments across Europe reduce permission for public gatherings, we note that markets have already gone through several periods of mobility restrictions … .
Also supporting the tightening supply outlook was a statement from Iran blaming the United States for a pause in nuclear talks, which could mean a delay in the return of Iranian barrels to the market.
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