Oil Prices Surge on Strong US Demand - Capital Street FX
Oil Prices Surge as US Inventories Indicates Robust Demand.
Introduction
In the latest market update, oil prices witnessed a significant increase due to robust demand, as indicated by data from US inventories. This surge has pushed oil prices close to their highest levels since April. Let’s delve into the fundamental overview and technical analysis of Brent crude oil and explore the factors contributing to this upward trend.
Fundamental Overview
Crude And Gasoline Inventories Drive Up Oil Prices
On Wednesday, oil prices experienced an uptick following a report on crude and gasoline inventories, which showcased strong demand in the United States. At 0949 GMT, October Brent crude futures saw a rise of 44 cents, or 0.5%, per barrel, while September West Texas Intermediate crude for the US increased by 48 cents, or 0.6%, per barrel.
Surprising Drawdown In US Crude Oil Stockpiles
According to the American Petroleum Institute (API) data, US crude oil stockpiles plummeted by a staggering 15.4 million barrels during the week ending July 28. This drop far exceeded analysts’ predictions, which had forecasted a loss of only 1.37 million barrels. If the US government statistics corroborate this drawdown, it would mark the most substantial decrease in US oil stockpiles since 1982.
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