Oil Prices Climb On Huge Inventory Draw
The American Petroleum Institute (API) on Tuesday reported a draw in crude oil inventories of 8.537-million barrels for the week ending June 11. Analysts had predicted a much smaller draw of 3.290 million barrels for the week. In the previous week, the API reported a draw in oil inventories of 2.108 million barrels after analysts had predicted a draw of 2.036 million barrels. Crude oil inventories have fallen by more than 22 million barrels since the start of 2021, according to API data, but are still up 34 million barrels since January 2020. Click Here to read more from Oil Price.
Oil steadies after hitting 2-yr high as demand hopes face supply growth
Oil prices ended mostly unchanged on Monday, after hitting their highest levels in more than two years, as growing U.S. crude production and Britain’s delayed COVID-19 reopening dampened expectations for fuel demand growth and tighter supplies. The market reacted negatively to a U.S. Energy Information Administration (EIA) forecast that shale oil output, which accounts for more than two-thirds of U.S. production, was expected to rise by about 38,000 barrels per day (bpd) in July to about 7.8 million bpd. Click Here to read more from Reuters.
Oil Prices Rise Supported by Economic Recovery, Prospects of Fuel Demand Growth
Energy stocks are poised for a mixed to higher start, backed by gains in the crude complex while the broader index futures seesawed between gains and losses. Growth is expected to outpace value as the yield on the 10-year note continues its decline. In sector news, reports over the weekend stated that Shell could sell part or all of its position in the Permian Basin as it is faced with pressures to cut carbon emissions. The Permian accounts for 6% of Shell’s total oil and gas output in 2020, the article stated. Click Here to read more from NASDAQ.
Here’s what sparked the latest talk over $100 oil prices
A rise in oil prices to $100 a barrel isn’t likely anytime soon, analysts say, but traders still are placing bets on a price spike that tallies as much as 30% by the end of 2022. There is a belief that demand will outstrip supply in 2022, with limited production increases among U.S. producers, as well as limited investment in longer-term oil plays, spurring projections for triple-digit prices, says Regina Mayor, global energy leader at KPMG. Click Here to read more from Market Watch.