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US crude oil trades for less than $ 100 as pump prices soar and gasoline inventories skyrocket

https://sputniknews.com/20220720/us-crude-oil-returns-below-100-as-gasoline-stocks-balloon-amid-high-pump-prices-1097634275.html

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New York (Sputnik)-US crude oil falls below $ 100 a barrel on Wednesday after government reports show that gasoline stocks have swelled for two consecutive weeks, disrupting demand amid high fuel pump prices Suggested that it was done.

New York’s most actively traded West Texas Intermediate (WTI) oil contract fell 86 cents (0.9%) after a midday low of $ 98.19 in September, trading at $ 99.88 a barrel.

Brent crude oil traded in London in September fell 43 cents (0.4%) after hitting a low of $ 103.60, trading at $ 106.92 a barrel.

WTI has been struggling to ensure a return to triple-digit pricing since last Thursday plunged to a nearly five-month low of $ 90.58.

In the last three sessions, WTI was pulled back to a high in the US session after being drawn to the lows of Asian trading last week. Even in the Wednesday session, it seemed like that was going on before it was even more depressed in the last hour.

The Energy Information Agency (EIA) said in its Weekly Oil Status Report that gasoline inventories increased by about 3.5 million barrels in the week to July 15 and then 5.8 million barrels in the week to July 8. rice field. Industry analysts expected a 71,000 barrel build last week and a 357,000 barrel decrease last week.

Gasoline prices will be displayed at gas stations in Vernon Hills, Illinois on Friday, April 1, 2022. 180 million barrels of crude oil for six months from a strategic oil reserve. -Sputnik International, 1920, 06.04.2022

Oil fell 5% on day 2 in red, US crude less than $ 97

This is the largest continuous build of petrol stockpiles (US major automotive fuels) since the week of January 7th and 14th, during which time inventories have increased by approximately 14 million barrels in total.

The spike in inventories was caused by the stubborn maintenance of the average price of gasoline in US pumps near $ 4.50 per gallon. This is considered high despite falling below a record peak of $ 5.01 per gallon in mid-June. Prior to this year, gasoline rarely exceeded $ 3.50 per gallon since 2014, even at the peak of summer driving as it is today.

Energy prices are currently one of the top three factors in US inflation, the highest level in 40 years since last year, according to economists.

According to EIA data, gasoline pump demand last week fell by 8.5 million barrels from 9.3 million barrels last week.

“Gasoline inventories have risen for the second straight week, but it’s the clearest sign of demand disruption to date,” said energy market commentator John Kirduff. “US drivers reduce driving, facilitate acceleration, reduce unnecessary travel, use the most fuel-efficient cars in the garage, and if possible, use mass transit. We are doing everything we can to reduce our gasoline bill. “

EIA data also showed that the stockpile of distillates (oil variants needed to make the diesel needed for trucks, buses and trains, and fuel for jets) fell by 1.3 million barrels last week. Analysts forecast an increase in distillates last week to 1.17 million, after an increase of 2.67 million last week.

Better consumption of distillates has shown that, in the high price of gasoline, more Americans may actually be more dependent on public transport than cars.

Meanwhile, crude oil inventories fell 446,000 barrels last week, compared to the expected 1.36 million barrels. Crude oil inventories have increased by approximately 11.5 million barrels in the last two weeks.

The decline in crude oil inventories came about last week as the EIA reported a relatively small drawdown of 5 million barrels of crude oil from its strategic petroleum reserves. Weekly drawdowns from the country’s oil reserves previously ranged from 6 to 7 million barrels in the past month.

The Byden administration reserves to add crude oil supply to the market to alleviate the global supply shortage of oil in the aftermath of the Ukraine conflict and the consequent sanctions on Russia, a major energy exporter. Has been heavily dependent on.



https://sputniknews.com/20220720/us-crude-oil-returns-below-100-as-gasoline-stocks-balloon-amid-high-pump-prices-1097634275.html US crude oil trades for less than $ 100 as pump prices soar and gasoline inventories skyrocket

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