The geo-political risk and expectation of three rate cuts from US fed has triggered rally in oil prices, says Mohammed Imran.
Crude oil prices experienced their most significant one-day increase in over nine months Wednesday due to escalating geopolitical tensions in the Middle East that could lead to a disruption of the region’s crude supplies after Israel launched an airstrike in Iran that killed a Hamas leader and an airstrike in Beirut that killed a Hezbollah leader. Click here to connect with us on WhatsApp
WTI crude futures rose 4.26 per cent to $77.91 due to Middle East conflict fears but fell 4.5 per cent on the monthly basis in July due to production uncertainties and weak Chinese demand. Brent crude gained 2.66 per cent, closing at $80.72.
The EIA’s weekly inventory report showed that US commercial crude oil inventories fell by 3.44m barrels over the last week despite refiners cutting run rates by 1.5 percent. This was driven by the Midwest with an outage at the Joliet refinery. Stronger crude oil exports would have contributed to the draw, growing 733k b/d WoW.
Gasoline inventories declined by 3.67m barrels, which took stocks to their lowest level since December. Lower refinery runs also offset a WoW decline in implied gasoline demand. However, implied demand continues to trend above seasonal levels. For distillates, stocks increased by 1.53m barrels over the week.
