Oil Prices Increase Due to Decreased US Crude Inventories and Canadian Wildfires
Oil prices rose on Wednesday, breaking a three-day decline streak, as the decreasing crude oil inventories in the US and increasing delivery risks due to wildfires in Canada drove up prices, according to Reuters.
Futures on Brent crude oil for September increased by 37 cents, or 0.5%, to $81.38 per barrel, while those on the American crude oil West Texas Int
WTI Crude Oil Prices Increase by 0.5% to $77.34 per Barrel
WTI prices rose by 38 cents, or 0.5%, to $77.34 per barrel in September.
Over the past three sessions, WTI has dropped by 7%, while Brent prices fell by nearly 5%.
Market sources, citing the American Petroleum Institute (API), report that crude oil, gasoline, and distillate inventories in the US have decreased for the fourth consecutive week, reflecting stable demand in the world’s largest consumer of oil.
API data shows that crude oil inventories decreased by 3.9 million barrels in the week ending July 19. Gasoline inventories also saw a decrease, while distillate inventories remained stable.
Decrease in US Crude Oil Reserves
Recent reports show a decrease in US crude oil reserves, with 2.8 million barrels less in stockpiles and 1.5 million less in distillates. This marks the first time since September 2023 that crude oil reserves in the US have decreased for four consecutive weeks. Official government data on oil reserves is expected to be released on Wednesday.
Canadian Wildfires Impacting Oil Prices
In addition to the decrease in US oil reserves, the wildfires in Canada have also contributed to the rise in oil prices. These wildfires have forced some producers to limit production and have disrupted a significant portion of oil deliveries, further impacting the global oil market.
Oil Prices Drop to Lowest Level Since June
On Tuesday, Brent crude hit its lowest level since June 9th as the market closed, amidst negotiations to cease fire between Israel and Hamas as part of a plan outlined by US President Joe Biden in May, with mediation from Egypt and Qatar.
The price of oil also suffered from ongoing concerns about an economic slowdown in China, the largest importer of crude oil in the world, which could weaken global demand.
*Data as of 9:00 AM Bulgarian time.
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