Startup Observer.com
  • Home
  • Industries
  • Innovation
  • outsourcing
  • Business
  • Finance
  • Headlines
  • Opinion
  • News
Home News Oil prices slip as U.S. fuel inventories rise
News

Oil prices slip as U.S. fuel inventories rise

by maria January 5, 2022
January 5, 2022
gawdo

By Mohi Narayan

NEW DELHI (Reuters) -Oil prices dropped on Wednesday after U.S. fuel stockpiles climbed, indicating declining demand in the world’s biggest oil consumer amid a massive spike in COVID-19 cases caused by the Omicron variant.

Brent crude futures fell 9 cents, or 0.11%, to $79.91 a barrel at 0537 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 13 cents, or 0.17%, to $76.86 a barrel.

U.S. gasoline stockpiles rose by 7.1 million barrels in the week to Dec. 31, the American Petroleum Institute (API) reported late on Tuesday. Distillate stockpiles climbed by 4.4 million barrels in the week. [API/S]

The surging stockpiles, which exceeded analysts’ expectations, undermined the bullish outlook from investors during the previous session when price climbed more than 1% as market participants took the decision of major producers to add supply next month as a sign of confidence that surging COVID-19 cases would not hit demand for long.

“Rising U.S. production as more and more producers find it lucrative to return to the well pad is weighing on oil prices,” Sugandha Sachdeva, vice president of commodities research at Religare Broking said.

Meanwhile, the Organization of the Petroleum Exporting Countries, Russia and allies, together called OPEC+, on Tuesday agreed to add another 400,000 barrels per day of supply in February, as it has every month since August.

The decision to stick their output increase reflected the group’s view that Omicron will only have a short-lived impact on global energy demand.

“Two consecutive days of strong gains have put crude in over-bought territory,” said Vandana Hari, founder of Vanda Insights, provider of oil market analysis.

Market sentiment will continue to see-saw, Hari said.

One the one hand, there may be growing hope that the Omicron variant may herald COVID-19’s shift from pandemic to a more easily manageable disease, at least in the highly vaccinated parts of the world.

But on the other, prices may be hit by a sobering realisation that countries remain on high alert, and governments are not ready to relax restrictions as long as infections are spiking.

(Reporting by Mohi Narayan and Sonali Paul; Editing by Christian Schmollinger and Kenneth Maxwell)

www.gawdo.com
Share on FacebookShare on TwitterShare on Linkedin
0 FacebookTwitterPinterestEmail
previous post
Beijing meets state air quality standards for first time in 2021
next post
South Korea to appeal court order exempting private schools from vaccine passes

You may also like

Woodinville Whiskey expands with sustainable processing facility by...

June 30, 2022

Open University to focus on societal challenges that...

June 23, 2022

Aramco and Cognite join forces in new data...

June 22, 2022
Editorial & Advertiser disclosureEditorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
gawdo.com
https://www.gawdo.com
  • About us
  • Advertising & Terms of Use
  • Contact Us
  • Privacy Policy

@2021 - All Right Reserved.


Back To Top
Startup Observer.com
  • Home
  • Industries
  • Innovation
  • outsourcing
  • Business
  • Finance
  • Headlines
  • Opinion
  • News
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT