|
The
market has been generally stronger as demand has rebounded and
the Organization of the Petroleum Exporting Countries and their
allies have held millions of barrels of supply from the market.
OPEC+, as the group is known, was expected to boost supply, but
discussions broke off without an agreement.
Brent crude rose $1.33, or 1.8%, to settle at $76.49 a barrel,
while U.S. West Texas Intermediate crude rose $1.15, or 1.6%, to
settle at $75.25 a barrel.
The Paris-based IEA said global storage drawdowns in the third
quarter were set to be the biggest in at least a decade, citing
early June stock draws from the United States, Europe and Japan.
"You’re still not going to have enough crude oil on the market
to avoid a supply deficit by the end of the year. That was
definitely a tailwind for the market," said Bob Yawger, director
of energy futures at Mizuho.
Oil prices will be volatile, the IEA said, until differences are
resolved among members of OPEC+. The group has been unwinding
record output curbs agreed last year to cope with the pandemic.
But a dispute over policy between Saudi Arabia and the United
Arab Emirates put plans to pump more oil on hold.
Nuclear talks between world powers and Iran are not likely to
resume until after the Islamic Republic installs its new
president next month, restricting another potential source of
supply.
Industry data on U.S. stockpiles on Tuesday showed that oil and
gasoline inventories fell last week, according to two market
sources, citing American Petroleum Institute figures. Crude
stocks fell by 4.1 million barrels for the week ended July 9,
the sources said, which would be their eighth consecutive weekly
decline. [API/S] [EIA/S]
U.S. government data is expected on Wednesday.
Still, coronavirus infections are surging in some parts of the
world, which could sap demand if outbreaks become more
pronounced.
The World Health Organization warned the Delta COVID-19 variant
was becoming dominant and many countries had yet to receive
enough doses of vaccine to secure their health workers.
(Reporting by Stephanie Kelly in New York; Additional reporting
by Noah Browning and Yuka Obayashi; Editing by Marguerita Choy,
Louise Heavens and Sonya Hepinstall)
[© 2021 Thomson Reuters. All rights
reserved.] Copyright 2021 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
