Crude oil traded steady on Thursday as markets assessed U.S. President Joe Biden’s demand on the world’s major oil producers to restore supply faster to help make gasoline prices more affordable for Americans.
In the Asian session, Brent crude futures traded slightly higher at $ 71.50 a barrel, while US WTI traded at $ 69.30 a barrel.
The Biden administration has urged the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+ to increase oil production to address rising petrol prices seen as a threat to global economic recovery.
OPEC agreed in July to increase monthly output by 400,000 a day starting in August through December, and stop it when production rates return to pre-pandemic levels before the cuts were announced.
Still, there are concerns that the hike will not be enough to meet demand as the U.S. and Europe loosen movement restrictions widely.
Data from the U.S. Energy Information Administration (EIA) on Wednesday showed fuel demand in the country on average recorded 20.6 million barrels a day in the last four weeks. U.S. mills also increased the amount of crude oil processed last week.
In addition, the EIA also reported a modest decline in US crude oil supplies last week, slightly off from expectations. Meanwhile, petrol stocks declined to their lowest level since November.
