U.S. crude stocks stabilise as Saudi export surge ends - Kemp

U.S. crude stocks stabilise as Saudi export surge ends - Kemp

" Aside from that, data released on Tuesday had also revealed that the US Consumer Confidence had ebbed off on July amid steady rise in pandemic cases, which had also bolstered investors' belief of a baleful crude oil demand in a near-term outlook".

Citing statistics, on Tuesday's commodity market closure, United Kingdom crude futures' prices fell by 0.40 per cent to $43.22 per barrel, while the US West Texas Intermediate crude oil futures' prices were pummelled 1.4 per cent to $41.04 a barrel, however, the Brent and US WTI crude oil futures' prices have been on track for reporting their fourth and third straight month of gains respectively. On Thursday, Brent closed down 1.9% but had recovered much of the ground lost from the lowest level since July 10.

U.S. crude oil inventories fell by 10.6 million barrels last week to 526 million barrels, the Energy Information Administration said, in their largest drawdown since December.

US crude was down 4 cents, or 1%, to $39.88 after dropping 3.3% in the previous session, also off lows not seen since July 10.

"As long as we're recording new daily cases, the risk for oil demand is just too strong", said Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia.

"We now only rarely hear talk of V-shaped demand recoveries and extremely tight markets, the views that allowed Brent to rally beyond United States dollars 40/bbl", Standard Chartered said.

The pandemic is keeping alive concerns about falling fuel demand causing an oversupplied market as record numbers of coronavirus infections are reported globally, including in the U.S., the world's biggest consumer of oil.

"Global stimulus and a weak dollar will continue to support oil prices as historically oil is seen as a hedge against inflation", said Keshav Lohiya, CEO of consultancy Oilytics.

Analysts' expectations in a Reuters poll were for an increase of 357,000 barrels.

Weaker refining margins around the world, lower Chinese oil demand and high crude inventories are putting further pressure on oil prices, Lohiya said.

OPEC+, a grouping of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively plan to increase production from Saturday, adding about 1.5 million barrels per day to global supply.