Oil prices slip ahead of U.S. inventory report
Oil prices slipped after early gains on Wednesday, though a potential drop in U.S. crude stocks and tighter supplies capped losses. Brent crude futures were at $84.56 a barrel by 1101 GMT, down 22 cents, or 0.3%, after touching a session high of $85.50. U.S. West Texas Intermediate (WTI) crude futures fell by 49 cents, or 0.6%, to $83.66 after rising close to $85. Market sources said that API data showed U.S. crude stocks declined by 2.5 million barrels for the week to Nov. 5, defying analysts’ estimates for a 2.1 million build in crude stocks in a Reuters poll. Click Here to read more from Reuters.
Crude oil demand returns faster than supply, increasing prices and reducing inventories
The price of U.S. benchmark West Texas Intermediate (WTI) crude oil is near its highest level since 2014, increasing rapidly from low prices in mid-2020. Because of the economic effects, government and business responses, and personal travel changes caused by the COVID-19 pandemic in 2020, demand for crude oil and petroleum products declined rapidly, inventories increased, and prices fell. Click Here to read more from EIA.
Biden’s Infrastructure Bill Will Boost Oil Demand
While the Biden administration’s landmark Infrastructure Bill has been framed as anti-fossil fuels by the media as well as by politicians such as coal country’s Joe Manchin, oil has ironically surged on the back of the bill’s long-awaited passing. “This U.S. infrastructure bill screams bullish for oil,” Louise Dickson, senior oil markets analyst at Rystad wrote in a recent note. Click Here to read more from Oil Price.
Biden plans announcement in response to rising oil prices
Energy Secretary Jennifer Granholm has revealed President Biden may this week announce details on a long-term response to rising oil and gas prices. Supply chain disruptions have hindered efforts to bolster the U.S. economy during the COVID-19 pandemic. The backlog grew due to a number of issues in production from China as well as a significant problem in ports, such as a labor shortage and higher costs that have disrupted normal operations. Click Here to read more from Fox Business.