Why Falling U.S. Inventories Fail To Lift Oil Prices
Oil
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Article by:
Tsvetana Paraskova - Oil Price
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Date Published:
July 30, 2024
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Who was cited:
FGE
“Although the latest EIA weekly stocks data have helped flip the month-to-date July observable on-land stocks trends from a build to a small overall draw, while recent US gasoline demand has looked much stronger, oil markets remain in risk-off mood,” analysts at consultancy FGE wrote in a note on Friday.
The main bearish drivers last week were concerns about China’s oil demand in the second half of the year and weaker-than-anticipated manufacturing data for the United States and Europe, according to FGE.
The implied high U.S. gasoline demand could be partially due to a release of delayed gasoline deliveries to filling stations, which were unable to stock up around July 8 due to Hurricane Beryl in Texas, the consultancy noted.
“As such, without further evidence yet of sustained stockdraws, any upside for crude prices and structure may be limited in the immediate short-term,” FGE said.
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