Industry
Oil prices slipped for the fourth day on Wednesday over concerns about rocky demand in Europe, even as hopes of a resurgence in U.S. sieve activity with industry data showing U.S. crude stocks fell unexpectedly. -week last week.
PHOTO FILE: A sticker reading crude oil on the side of a storage tank in the Permian Pool in Mentone, Loving County, Texas, SA November 22, 2019. REUTERS / Angus Mordant / File Photo
MELBOURNE: Oil prices for the fourth day on Wednesday slipped on concerns about rocky demand in Europe, even as hopes were rekindled in U.S. distilling activity with industry data showing that U.S. crude stocks fell unexpectedly. -week last week.
U.S. West Texas Intermediate (WTI) crude futures fell 5 cents to US $ 64.75 a barrel at 0229 GMT, after climbing as much as 28 cents in early trading.
Brent crude futures fell 10 cents, or 0.2per per cent, to US $ 68.29 a barrel, after initially gaining up to 23 cents.
The market has been moving lower in the last few days amid concerns about halting the spread of vaccines leading to a slowdown in fuel demand.
“Concerns that demand may fall further have been raised as European health ministers block the rollout of the AstraZeneca vaccine amid health concerns,” ANZ Research said in a note.
While demand is growing in India and the United States, it remains weak in Europe, ANZ said, noting that French road fuel consumption fell 10.8per in February from last year. earlier, according to the country’s UFIP petrol industry federation.
On the positive side, U.S. crude investments fell 1 million barrels a week to March 12, according to trade sources citing data from the American Petroleum Institute. Analysts in a Reuters poll had expected to pick up 3 million barrels,
“The market didn’t have a wrong leg but it was still a surprise after U.S. oil stocks fell unexpectedly last week,” said Stephen Innes, Axi’s chief global market strategist.
At the same time, gasoline stocks fell less than expected, declining by 926,000 barrels, compared to estimates for a draw of 3 million barrels.
The “narrower weekly drawdown in gasoline stocks indicated that refueling activity was normalizing after a severe frost in Texas sparked production in the previous month,” Innes said in a note.
The historic freezing spell in the southern U.S. states spilled nearly a quarter of the country’s redecoration capacity last month.
Traders are looking for confirmation of drawdown in raw stocks in official data due from the Energy Information Administration due Wednesday.
(Narrated by Sonali Paul; Editing by Muralikumar Anantharaman)