Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. 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 to our advertising partners websites. 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 advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

Oil ticks up on inventory drawdown outlook, Middle East risks

Oil ticks up on inventory drawdown outlook, Middle East risks

SINGAPORE (Reuters) -Oil prices inched up during Asian trade on Wednesday despite a surprise jump in U.S. stockpiles, driven by geopolitical risks from the Middle East conflict and forecasts of an eventual inventory drawdown during the third quarter peak demand season.

Brent crude oil futures rose 40 cents, or 0.5%, to $85.41 a barrel by 0406 GMT. U.S. West Texas Intermediate crude futures gained 43 cents, or 0.5%, to $81.26 per barrel.

“It seems the market is shrugging off demand concerns for now, anticipating inventory drawdowns in peak third quarter demand season. Official Energy Information Administration (EIA) inventory numbers today will provide the market further pointers on the trend,” said Suvro Sarkar, energy sector team lead at DBS Bank.

The American Petroleum Institute (API) reported U.S. crude oil stocks rose by 914,000 barrels in the week ended June 21, according to market sources briefed on the data. Analysts polled by Reuters expect crude stocks to have declined by nearly 3 million barrels last week.

Official U.S. government data from the EIA on oil and fuel stockpiles is due at 1430 GMT.

Despite the near term pressure of a stronger dollar and bearish U.S. crude oil stocks data, the market is likely to find support on the back of continued OPEC+ cuts and stronger seasonal demand during the third quarter, said Warren Patterson, head of commodities strategy at ING.

“Our balance suggests the (global) market will be in a roughly 1.5 million barrels per day deficit in the third quarter due to continued OPEC+ cuts and stronger seasonal demand usually seen in the third quarter. We are already seeing signs of tightening with a stronger North Sea physical market.”

Additionally, increasing geopolitical risks with Houthi attacks in the Red Sea and mounting Israel-Hezbollah hostilities in Lebanon are also bullish for oil prices, DBS’ Sarkar said.

Yemen’s Iran-aligned Houthi group has been launching drone and missile strikes in shipping lanes since November, saying they are in solidarity with Palestinians in Gaza in the Israel-Hamas war. This has disrupted shipping in the Red Sea corridor, stoking concerns over freight flow.

The Houthis have so far sunk two vessels and seized another, and said on Tuesday they used a missile to hit a vessel in the Arabian Sea.

(Reporting by Shariq Khan in New York and Emily Chow in Singapore; Editing by Shri Navaratnam)

 

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts