Oil rose in Asia on Wednesday morning, leaving the U.S. An imbalance in crude supply increased, which strengthened expectations that fuel demand would outweigh supply growth. However, the increasing number of COVID-19 cases worldwide has made black liquid profitable.
Brent oil futures rose 0.65% to $ 74 after scattering 2 cents during the previous session on its first decline in six days. WTI futures rose 0.77% to $ 72.20, reversing its 0.4% decline on Tuesday.
U.S. crude oil supply data released on Tuesday from the U.S. Petroleum Corporation reached 4.728 million barrels for the week ended July 23. Estimates made by Investing.com forecast a balance of 3.433 million barrels, compared to 806,000 barrels reported in the previous week.
Investors are now investing in the U.S. Waiting for Energy Information Management (EIA) crude oil supply data.
“Most energy traders were unimpeded by the previous week’s framework, so the expectation for EIA crude oil inventory data should be high to ensure inventories fall again,” OANDA analyst Edward Moya said in a note.
API data Petrol inventory fell 6.226 million barrels.
“The U.S. is still in the driving season and everyone is trying to make the most of this summer,” Moya said in his note.
Global commodities are expected to tighten for the remainder of 2021 as key countries in the market continue their economic recovery from COVID-19. However, the increasing number of cases involving the virus ’delta variation has led many countries to reactivate control measures, and the black liquid is set to record its second monthly.
Refiners who can make their best profits over the years continue to be challenged by its impact on the growing COVID-19 cases and fuel demand perspective. Concerns that renewed demand weakness could lead to swollen reserves and re-squeezing edges are cashing in on processors ’options.
The biggest risk to oil prices is still the delta variant of COVID-19, which many countries are still coming up with their eruptions.
However, “U.S. Europe’s demand is to continue to support prices at this time, ”he said.