Oil prices are rising weakly on Wednesday morning ahead of the publication of the US Department of Energy report on energy stocks in the country.
Traders’ attention is also directed to the data on the dynamics of consumer prices in the States for June, which is expected to influence the decisions of the Federal Reserve at the nearest meetings.
Inflation data will be published at 15:30 Q2, the report of the Ministry of Energy on energy stocks – at 17:30 Q2.
The cost of September Brent crude futures on the London-based ICE Futures exchange at 8:15 Q2 on Wednesday is $79.49 per barrel, up $0.09 (0.11%) from the previous session’s closing price. On Tuesday, these contracts rose $1.71 (2.2%) to $79.4 per barrel.
The price of WTI oil futures for August at the electronic trading of the New York Mercantile Exchange (NYMEX) increased by $0.1 (0.13%) to $74.93 per barrel. The day before, the cost of contracts rose by $1.84 (2.52%), to $74.83 per barrel.
Data from the American Petroleum Institute (API), released on Tuesday night to Wednesday, showed an unexpected increase in U.S. inventories in the week ended July 7. The indicator increased by 3.026 million barrels, while experts surveyed by Trading Economics, on average, expected its decline by 200 thousand barrels.
A week earlier, oil reserves fell by 4.382 million barrels.
Oil prices are rising on Tuesday thanks to China’s announced measures to support the real estate market, whose problems continue to hold back the country’s economic growth.
The People’s Bank of China (Central Bank) will expand its program to support developers, including encouraging banks to extend loans to representatives of the sector to complete housing projects, Market Watch reports.
The attention of traders this week is directed to the data on the dynamics of consumer prices in the U.S. for June, as well as monthly reports of OPEC and the International Energy Agency (IEA).
The cost of September Brent crude futures on the London-based ICE Futures exchange by 8:20 Moscow time on Tuesday is $78.08 per barrel, up $0.39 (0.50%) from the previous session’s closing price. On Monday, these contracts fell $0.78 (1%) to $77.69 per barrel.
The price of WTI oil futures for August at the electronic trading of the New York Mercantile Exchange (NYMEX) increased by $0.41 (0.56%) to $73.4 per barrel. The previous day, the value of these contracts fell by $0.87 (1.2%), to $72.99 per barrel.
“New stimulus for the Chinese real estate market is supporting the oil market,” said Warren Patterson, who is in charge of commodities strategy at ING Groep NV. – U.S. inflation data to be released on Wednesday could determine the market’s direction in the short term as it will show what to expect from the Fed in the coming months.”
Benchmark oil prices are falling Monday morning after a three-month record rise at the end of last week.
The price of September futures for Brent on the London-based ICE Futures exchange at 8:18 a.m. Q4 is at $78.02 a barrel, down 45 cents (0.57%) from the previous session’s close. On Friday, these contracts rose by $1.95 (2.6%) – to $78.47 per barrel, having updated the maximum since May 1.
Quotes of futures for WTI crude oil for August at the electronic trading of the New York Mercantile Exchange (NYMEX) by the specified time decreased by 47 cents (0.64%) and amounted to $73.39 per barrel. At the end of the previous session they rose by $2.06 (2.9%) – to $73.86 per barrel.
Last week Brent rose in price by 4.1%, WTI – by 4.6%.
Positive factors for the oil market were the data on the third consecutive weekly reduction of inventories in the United States and the news about the extension of voluntary production cuts by Saudi Arabia.
As reported, commercial oil reserves in the U.S. last week decreased by 1.5 million barrels. Experts surveyed by S&P Global Commodity Insights, on average, predicted a decline of 3.6 million barrels.
Saudi Arabia announced the extension of a voluntary oil production cut of 1 million bpd for August. Thus, the country’s production in August will remain at around 9 mln bpd.
Oil prices of benchmark grades are weakly falling Thursday morning after an increase in the previous session.
The price of September futures for Brent on London’s ICE Futures Exchange stood at $76.41 a barrel by 8:10 a.m., down $0.24 (0.31%) from the close of the previous session. Those contracts rose $0.4 (0.5%) to $76.65 a barrel on Wednesday.
The price of WTI crude futures for August at electronic trades of NYMEX fell by 6 cents (0.08%) to $71.73 per barrel by that time. The day before these contracts rose $2 (2.9%) to $71.79 a barrel.
A positive factor in previous session was the statements of the Minister of Energy of Saudi Arabia Prince Abdulaziz bin Salman that OPEC+ will do everything necessary to support the oil market.
On Monday, Saudi Arabia announced an extension of its voluntary oil production cut of 1 million bpd for August. Thus, the country’s oil production will remain at around 9 mln bpd in August.
Meanwhile, according to the American Petroleum Institute (API), U.S. oil inventories fell by 4.38 million barrels last week.
Official data from the nation’s Energy Department will be released Thursday at 6 p.m. Q, a day later than usual since Tuesday was a non-working day in the States. Experts polled by Trading Economics, on average, forecast a decrease in oil reserves by about 1 million barrels.
Oil is moderately expensive on Tuesday morning.
The price of September Brent futures on London’s ICE Futures Exchange stands at $75.02 a barrel by 8:11 a.m., $0.37 (0.5%) above the previous session’s closing price. Those contracts fell $0.76 (1%) to $74.65 a barrel on Monday.
WTI futures for August crude oil grew by $0.36 (0.52%) to $70.15 per barrel at electronic trades on NYMEX. The day before these contracts went down by $0.85 (1.2%) to $69.79 per barrel.
On Monday, Saudi Arabia announced that it was extending its voluntary cut of oil production by 1 mln bpd for August. Thus, Saudi Arabia’s oil production will remain at around 9 million bpd in August.
Meanwhile, Russia, in an effort to balance the market, will voluntarily reduce supplies to oil markets by 500,000 bpd in August by reducing exports by a specified amount, Russian Deputy Prime Minister Alexander Novak told reporters.
Oil initially reacted to the news with moderate positivity, but it was not enough for a significant rally, Sevens Report Research analysts said.
A negative factor for the market was the news that the index of business activity in the U.S. manufacturing sector (ISM Manufacturing) fell to 46 points in June from 46.9 points a month earlier. Experts, the consensus forecast of which was quoted by Trading Economic, had expected the growth up to 47 points.
Meanwhile, the euro area manufacturing purchasing managers’ index (PMI) fell to 43.4 points this month, down from 44.8 points in May, according to final data from Hamburg Commercial Bank (HCOB) and S&P Global. Previously, it had reported a decline to 43.6 points. The final result indicates the sharpest deterioration in the sector since May 2020, Trading Economics wrote.
Oil quotations are weakly rising on Friday morning after a moderate rise in prices at the end of the previous session.
The value of August futures for Brent on London’s ICE Futures Exchange stood at $74.49 a barrel by 8:02 a.m., $0.15 (0.2%) above the previous session’s closing price. Those contracts rose $0.31 (0.4%) to $74.34 a barrel on Thursday.
The price of WTI crude futures for August at electronic trades of New York Mercantile Exchange (NYMEX) increased by that time by $0.01, to $69.87 per barrel. The day before these contracts rose $0.3 (0.4%) to $69.86 a barrel.
Oil gets support from strong statistical data from the U.S. and signals about reduction of fuel reserves in the country.
On the eve of the U.S. Department of Commerce raised its estimate of the country’s GDP growth in January-March to 2% in annual terms from the previously announced 1.3%.
A day earlier it became known that oil reserves in the States last week fell by 9.6 million barrels instead of the expected decline by 4.8 million barrels, according to experts polled by S & P Global Commodity Insights.
Expectations of further monetary policy tightening by the leading central banks of the world are restraining factor for oil quotations.
Fed chairman Jerome Powell said earlier this week that most U.S. central bankers see the possibility of at least two more hikes in the benchmark interest rate. For her part, European Central Bank President Christine Lagarde said there was a high probability of a rate hike in the eurozone in July.
