Oil prices dropped on Wednesday, paring overnight gains, with soaring COVID-19 cases in India and a bigger-than-expected build in U.S. crude stocks offsetting confidence shown by OPEC and its allies in a solid recovery in global fuel demand.<\/p>\n
Brent crude futures fell 26 cents, or 0.4%, to $66.16 a barrel at 0205 GMT, paring a 1.2% gain from Tuesday. U.S. West Texas Intermediate (WTI) crude futures fell 23 cents, or 0.4%, to $62.71 a barrel, after gaining 1.7% on Tuesday.<\/p>\n
The American Petroleum Institute industry group reported crude stocks rose by 4.319 million barrels, according to two sources, which was a much bigger build than analysts in a Reuters poll had estimated.<\/p>\n
The more closely watched weekly inventory data from the U.S. Energy Information Administration (EIA) is due at 1430 GMT on Wednesday.<\/p>\n
U.S. crude had opened higher on Wednesday, after a market monitoring panel of the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, stuck with plans to bring 2.21 million barrels per day (bpd) back to the market in three stages between May and July.<\/p>\n
The volume includes 1 million bpd which Saudi Arabia voluntarily cut.<\/p>\n
“It’s almost as if they looked at the situation in India and some concerns in Brazil and said these are risks but right now the demand story still has a way to go,” said Commonwealth Bank commodities analyst Vivek Dhar.<\/p>\n
The rapid spread of COVID-19 infections in India has stalled oil price gains with fuel use and refinery output dropping in the country, the world’s third largest oil consumer. However the market is banking on a strong recovery in the United States and China to outweigh that impact.<\/p>\n
“India is certainly a risk, but I don’t think it’s going to derail the story we have right now on this rate of recovery,” Dhar said.<\/p>\n","protected":false},"excerpt":{"rendered":"
Oil prices dropped on Wednesday, paring overnight gains, with soaring COVID-19 cases in India and a bigger-than-expected build in U.S. crude stocks offsetting confidence shown by OPEC and its allies in a solid recovery in global fuel demand. Brent crude futures fell 26 cents, or 0.4%, to $66.16 a barrel at 0205 GMT, paring a 1.2% gain from Tuesday. U.S. West Texas Intermediate (WTI) crude futures fell 23 cents, or 0.4%, to $62.71 a barrel, after gaining 1.7% on Tuesday. The American Petroleum Institute industry group reported crude stocks rose by 4.319 million barrels, according to two sources, which was […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-412582","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/412582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=412582"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/412582\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=412582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=412582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=412582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}