• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 54 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 hour Could Someone Give Me Insights on the Future of Renewable Energy?
  • 13 hours How Far Have We Really Gotten With Alternative Energy
  • 1 day "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 2 days Bankruptcy in the Industry
  • 2 days The United States produced more crude oil than any nation, at any time.
Is $100 Oil Within Reach?

Is $100 Oil Within Reach?

We have a situation where…

Geopolitical Tensions Fail to Spark Oil Price Surge

Geopolitical Tensions Fail to Spark Oil Price Surge

The fluctuating prices in response…

Rising Middle East Risk Sparks Fear of $100 Oil

Rising Middle East Risk Sparks Fear of $100 Oil

In case of further escalation,…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Rally Continues On Bright U.S. Economic Data

Refinery

Oil prices rose early on Wednesday, driven by brighter economic prospects for the United States and continued recovery in oil demand in America and elsewhere in the world.

As of 9:04 a.m. EDT on Wednesday, ahead of the weekly inventory report by the U.S. Energy Information Administration (EIA), WTI Crude was up 1.04 percent at $73.61, and Brent Crude traded at $75.54, up by 0.99 percent on the day.  

Prices found support late on Tuesday after the American Petroleum Institute (API) reported a draw in crude oil inventories of 7.199 million barrels for the week ending June 18. If the EIA confirms a draw today, it would be the fifth consecutive week of crude inventory draws in the United States, where demand for fuels continues to grow.

According to GasBuddy data, last week’s U.S. gasoline demand rose by 2.87 percent from the prior week to a new COVID high.

“The tightening in the US market continues to support the WTI/Brent spread. This spread now trades at a discount of around US$1.80/bbl, levels last seen back in November. The prompt WTI timespread also remains firmly in backwardation. It is currently trading at a little over US$0.80/bbl, reflecting the tightness in the US market,” ING strategists Warren Patterson and Wenyu Yao said on Wednesday.

In commodity markets, the energy sector “has increasingly become the go to commodities” while industrial metals are suffering what looks like a short-term setback, due to rising market intervention by Chinese authorities and reduced focus on reflation, Ole Hansen, Head of Commodity Strategy at Saxo Bank, said today.

OPEC+ is considering bringing more barrels to the market in August, which suggests that the group is confident the rebound in demand would absorb additional supply.  

In another supportive voice for oil prices, OPEC Secretary General Mohammad Barkindo said on Wednesday at the meeting of the organization’s economic think-tank, the Economic Commission Board (ECB), that “the latest market developments point to much better conditions and improved outlooks” of the oil market and global economy. 

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on June 23 2021 said:
    The bright economic data from the United States are the latest in a series of bullish news causing oil prices to surge.

    The impressive surge of Brent crude price from under $40 a barrel in December 2020 to more than $75.69 today, an 89% rise in a 7-month non-stop period, suggests that oil prices are headed towards a supercycle. $80 oil is nigh.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News