Oil prices are down on Thursday after a strong rise the day before on data on a sharp decline in U.S. inventories.
The value of August Brent futures on London’s ICE Futures Exchange stood at $73.57 a barrel by 8:10 a.m. Thursday, down $0.46 (0.62%) from the previous session’s close. Those contracts rose $1.77 (2.5%) to $74.03 a barrel on Wednesday.
The price of WTI crude futures for August at NYMEX fell by $0.39 (0.56%) to $69.17 per barrel by that time. The day before the stocks went up $1.86 (2.8%) to $69.56 per barrel.
Last week crude inventories in the U.S. fell by 9.6 million barrels to 453.69 million barrels, according to the Energy Department. Experts polled by S&P Global Commodity Insights had on average forecast a less significant decline of 4.8 million barrels.
“The decline in U.S. inventories is largely due to an increase in oil exports,” said DTN chief analyst Troy Vincent, quoted by Market Watch. – This is occurring despite a decline in U.S. refinery activity.”
Stocks at the terminal in Cushing, which stores crude oil traded on the NYMEX, increased over the past week by 1.21 million barrels, according to the Energy Department.
The oil market ended the second quarter of 2023 in the negative due to the slower-than-expected recovery of the Chinese economy, as well as fears of recession in the U.S. and Europe amid a tightening of monetary policy by the Federal Reserve and the European Central Bank.
Fed Chief Jerome Powell said at the ECB forum in Sintra on Wednesday that most U.S. central bank leaders see the possibility of at least two more hikes in the prime rate.
