US oil stocks are declining
Oil prices fell in Asian trading, on Wednesday, as the rise in the dollar index overshadowed China’s pledge to support economic growth, reduce Russian supplies, and the decline in US crude oil inventories on a weekly basis.
The dollar recovered from its lowest level in 15 months against a basket of currencies, as it rose 0.1 percent, after core retail sales achieved strong gains in June, while investors await the Federal Reserve’s decision on interest rates next week.
A higher dollar makes oil more expensive for holders of other currencies, which contributes to lower crude prices.
China’s National Development and Reform Planning Commission on Tuesday pledged to implement policies to “strengthen and expand” consumption in the world’s second-largest economy as consumers’ purchasing power remains weak.
Russia will reduce its oil exports by 2.1 million tons in the third quarter of the year, the Russian energy ministry said, in light of a planned voluntary export cut of 500,000 barrels per day in August.
price move
Brent crude futures fell 12 cents, or 0.1 percent, to $79.51 a barrel by 0302 GMT, while US West Texas Intermediate crude lost 17 cents, or 0.2 percent, to $75.58 a barrel.
And data from the American Petroleum Institute showed, on Tuesday, that stocks of crude oil, gasoline, and distillate products in the United States all declined last week, and the decline in crude stocks amounted to about 800,000 barrels.
The market is awaiting the weekly inventory report from the US Energy Information Administration later on Wednesday, which is expected to show a decline in US crude oil inventories, which will provide more support to the oil markets. According to a note from ANZ.
Amer Al-Shobaki: The growth in oil demand will come from China
2023-07-19 03:27:57
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