Oil climbed above $ 73 a barrel, crushing a weekly loss, after data showing a collapse in US inventories and record fuel demand highlighted the upturn in consumption underpinning the rally in the US. gross this year.
West Texas Intermediate was up 0.6% in Asian trading after rising 1% on Thursday. U.S. crude and gasoline supplies plummeted last week, while a fuel demand gauge soared to 10 million barrels per day in the week leading up to the July 4 holiday, according to the Energy Information Administration. .
Still, the US benchmark remains on track for the first weekly decline since mid-May. Prices have been dragged down this week by a dispute between the United Arab Emirates and Saudi Arabia that has clouded the supply outlook for the Organization of the Petroleum Exporting Countries and its allies. In addition, a stronger dollar, the pullback by investors on stimulus betting and concerns about the spread of the delta variant of the coronavirus have also posed headwinds.
After gaining 11% last month, July proved more difficult for oil, due to growing uncertainties over supply and demand. While the dispute within OPEC + could prompt the cartel to leave production stable in August, which would further tighten the global market, it is also possible that members unilaterally add barrels. At the same time, reopenings in the United States and Europe are contributing to energy consumption, but the increase in infections with the delta strain poses a risk.
Market pricing models always suggest tension. Brent’s quick time spread was 84 cents a barrel in offset, with near-term prices higher than those further away. This compares to 47 cents a month earlier. Since the start of the year, the global oil benchmark has risen 44%.