Oil jumps to more than two-year high on U.S. inventories
Oil rose above $75 a barrel on Wednesday, reaching its highest since late 2018, after an industry report on U.S. crude inventories reinforced views of a tightening market as travel picks up in Europe and North America. The American Petroleum Institute reported that crude stocks fell by a bigger than expected 7.2 million barrels, two market sources said. Click Here to read more from Reuters.
Oil Prices Get Another Boost From Falling Crude Inventories
The American Petroleum Institute (API) on Tuesday reported a draw in crude oil inventories of 7.199-million barrels for the week ending June 18. Analysts had predicted a much smaller draw of 3.942 million barrels for the week. In the previous week, the API reported a draw in oil inventories of 8.537 million barrels after analysts had predicted a draw of 3.290 million barrels. Crude oil inventories have fallen by more than 29 million barrels since the start of 2021, according to API data, but are still up 27 million barrels since January 2020. Click Here to read more from Oil Price.
Oil Prices Falter Amid OPEC+ Meeting Rumors
Oil slid with reports that Russia and other OPEC+ nations are considering raising production in the wake of a tightly-supplied global crude market. Futures in New York fell 0.8% on Tuesday and Brent crude also declined after crossing $75 a barrel in Asia’s trading hours. While price indicators and inventory data show a pattern of demand outstripping supply, there are concerns that OPEC+ will boost output. The producer coalition will meet next week and Russia — which jointly leads the alliance with Saudi Arabia — was reported to consider proposing the group increase supply in August. Click Here to read more from Rig Zone.
As demand accelerates, BofA expects oil to reach $100/bbl next year
BofA Global Research raised its Brent crude price forecasts for this year and next, saying that tighter oil supply and demand balances in 2022 could push oil briefly to $100 per barrel. “We believe that the robust global oil demand recovery will outpace supply growth over the next 18 months, further draining inventories and setting the stage for higher oil prices,” the bank said in a note dated Sunday. Click Here to read more from Reuters.