Oil futures rose on Wednesday, extending a bounce from a recent decline as investor appetite for risky assets rebounded, despite industry data late Tuesday that showed an unexpected rise in US crude stocks ahead of Wednesday’s government storage report.
West Texas Intermediate crude for September delivery
It rose $1.29, or 1.9%, to $68.49 a barrel on the New York Mercantile Exchange. September Brent crude
The global benchmark rose $1.37, or 2%, to trade at $70.72 a barrel on the European ICE Futures Exchange.
Oil rebounded higher on Tuesday, with the US benchmark rebounding from a 7.5% drop on Monday, its biggest one-day drop since March. Stock markets and other assets seen as risky, which were also attacked on Monday, also rebounded sharply on concerns about the spread of the delta type of coronavirus that causes COVID-19.
Crude’s rebound comes despite data from an industry trade group late Tuesday showing an unexpected rise in US crude stocks, highlighting the official conclusion from the Energy Information Administration later Wednesday.
“Wednesday’s EIA report has the potential to put a floor in the market or accelerate the slide in prices.
The American Petroleum Institute reported late Tuesday that US crude suppliesإمدادات Jumped 806,000 barrels Sources said that the week ending July 16. The American Petroleum Institute report also reportedly showed an increase of 3.3 million barrels for gasoline stocks, but distillate stocks fell by 1.2 million barrels.
On average, the Energy Information Administration is expected to show a decline in crude oil stocks by 6.7 million barrels, according to a survey of analysts by S&P Global Platts. The survey also calls for a supply cut of 1.1 million barrels for gasoline and 600,000 barrels for distillate.
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