(Bloomberg) – Oil held steady after making the biggest jump in nearly three weeks, as an industry report pointed to lower U.S. gasoline and crude inventories.
New York futures traded near $ 68 a barrel after closing 2.7% higher on Tuesday. The American Petroleum Institute reported that fuel inventories fell 1.11 million barrels last week, according to people familiar with the data. It would be the fourth weekly draw, the longest string of declines since September, if confirmed by official figures expected later Wednesday.
Oil hit strong headwinds this month as the rapidly spreading delta variant of the coronavirus leads to increased infections and further restrictions on movement across the world, especially in China. The International Energy Agency is expected to release its monthly report on Thursday, giving the market an indication of how it sees the outlook for demand amid the Covid-19 resurgence.
The worsening sentiment is reflected in the oil futures curve. The quick time frame for was 40 cents per barrel in offset – a bullish pattern where near date contracts are more expensive than later date contracts. This compares to 92 cents at the end of July.
inventories fell 816,000 barrels last week, API said. National stocks are expected to have fallen by 750,000 barrels, according to a Bloomberg survey ahead of official data from the Energy Information Administration.
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