July 22, 2021

US Stock Rise Fails to Affect Oil Prices!

 Oil prices again showed a recovery by rebounding above the $ 70 a barrel price level, despite having been shocked by reports of U.S. crude supplies showing an increase.

The U.S. Energy Information Administration (EIA) reported that crude oil inventories increased by 2.11 million barrels last week. This is the first increase recorded since the end of May.

The decline in petrol stocks last week was also less than expected, with only 121,000 barrels compared to expectations for a decline of 1.04 million barrels.

At the beginning of the Asian session, Brent crude futures traded steady around $ 72.02 a barrel, after recording a 4.2% gain in the previous session.

Meanwhile, US WTI traded at $ 72.02 a barrel, following a 4.6% increase recorded in the previous session.

The increase was seen as driven by the depreciation of the US dollar which made crude oil prices cheaper for holders of other major currencies.

Both benchmarks declined sharply on Monday, after OPEC+ agreed to increase crude oil production by 400,000 barrels a day from August to December.