Oil falls on uninspiring US gasoline demand July 21, 2022 Oil drops due to uninspiring demand for US gasoline<br /> 21 July 2022 Creation time: 08:36 AM Last update: 08:36 AM Views: 50 New York, July 21 (BNA): Oil prices fell after US government data showed a drop in demand for gasoline during the peak summer driving season, and as central banks raised interest rates to fight inflation, raising fears of a slowing economy, which lowered energy demand. Prices pared losses during the session after TC Energy said the Keystone pipeline, one of Canada’s main oil export arteries, was operating at reduced rates for a third day, Reuters reported. Repairs continued at a third-party power facility in South Dakota, raising concerns about the tightness of supplies. Brent crude prices for September fell 43 cents to settle at $106.92 a barrel.US West Texas Intermediate crude for August fell $1.96 to settle at $102.26 a barrel. September’s most active contract, WTI, settled at $99.88 a barrel, down 86 cents. US gasoline stocks rose 3.5 million barrels last week. Gasoline supply was about 8.5 million barrels per day, or about 7.6% lower than the same period last year. “Gasoline is a huge concern here and you don’t really want to back down on gasoline in the middle of summer,” said Robert Yauger, executive director of energy futures contracts at Mizuho. Americans were shocked in June with pump prices soaring to a record high of over $5 per gallon. US crude stocks fell by 446,000 barrels last week, compared to analyst expectations for a 1.4 million barrel increase. Analysts expect tight oil supplies to continue to support prices while US shale oil production expands at a modest pace. “With OPEC+ having little room to increase production, the oil market will struggle to balance in the coming months, thus supporting prices,” said Stephen Brennock of BVM oil brokerage. Limited supplies kept Brent above $105 a barrel and pushed Brent’s inter-month spreads to a wide slide, at around 4.50 a barrel. The prices of the first month are higher than the prices of the coming months. ZHB Source link Related READ MORE US crude stockpiles rise as output, refining hits pre-pandemic rates: EIA
21 July 2022 Creation time: 08:36 AM Last update: 08:36 AM Views: 50 New York, July 21 (BNA): Oil prices fell after US government data showed a drop in demand for gasoline during the peak summer driving season, and as central banks raised interest rates to fight inflation, raising fears of a slowing economy, which lowered energy demand. Prices pared losses during the session after TC Energy said the Keystone pipeline, one of Canada’s main oil export arteries, was operating at reduced rates for a third day, Reuters reported. Repairs continued at a third-party power facility in South Dakota, raising concerns about the tightness of supplies. Brent crude prices for September fell 43 cents to settle at $106.92 a barrel.US West Texas Intermediate crude for August fell $1.96 to settle at $102.26 a barrel. September’s most active contract, WTI, settled at $99.88 a barrel, down 86 cents. US gasoline stocks rose 3.5 million barrels last week. Gasoline supply was about 8.5 million barrels per day, or about 7.6% lower than the same period last year. “Gasoline is a huge concern here and you don’t really want to back down on gasoline in the middle of summer,” said Robert Yauger, executive director of energy futures contracts at Mizuho. Americans were shocked in June with pump prices soaring to a record high of over $5 per gallon. US crude stocks fell by 446,000 barrels last week, compared to analyst expectations for a 1.4 million barrel increase. Analysts expect tight oil supplies to continue to support prices while US shale oil production expands at a modest pace. “With OPEC+ having little room to increase production, the oil market will struggle to balance in the coming months, thus supporting prices,” said Stephen Brennock of BVM oil brokerage. Limited supplies kept Brent above $105 a barrel and pushed Brent’s inter-month spreads to a wide slide, at around 4.50 a barrel. The prices of the first month are higher than the prices of the coming months. ZHB
