Benchmark U.S. crude rose $1.22, or 2.9 per cent, to close at $43.02 per barrel in NY. Higher demand is expected during the third and fourth quarters of this year and the market is on the path to rebalancing, he said. USA crude inventories climbed for a second week as imports arrived at the fastest pace since 2012. It fell as much as 55 cents after the release of the API data.
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Analysts and traders have warned of a glut in both crude and refined oil products this summer, pointing particularly to the lag in USA gasoline demand despite the peak season for driving in the United States.
In other energy trading, wholesale gasoline slipped a penny to $1.36 a gallon, while heating oil rose 3 cents to $1.34 a gallon.
At about 0445 GMT, US benchmark West Texas Intermediate for September was down five cents to $42.72 while Brent crude for October was unchanged at $44.98 a barrel. This popular ETF has accumulated $1.7 billion in its asset base.This Zacks ETF Rank #3 fund gained 9.7% and 18.4% over the three-month and year-to-date periods, respectively. It lowered its 2017 USA oil demand growth forecast to 100,000 bpd from 120,000 bpd previously.
The American Petroleum Institute, an industry group, is due to release its inventory update at 3:30 p.m. CT (20:30 GMT), ahead of the government’s report on August 10.
There was a substantial in gasoline stocks of 3.9mn, which should provide further significant relief over bloated gasoline stocks, while distillates recorded a draw of 1.6mn barrels.
In metals trading, the price of gold fell $3.10, or 0.2 per cent, to $1,341.30 an ounce. Royal Caribbean Cruises slid $4.92, or 6.7 percent, to $69.06, while Carnival lost $1.30, or 2.8 percent, to $45.18. The latest decline corresponds to a US economy in which overall economic growth has been sluggish while hiring has been relatively robust.
Japan’s Nikkei 225 finished 0.7 percent higher at 16,764.97 and South Korea’s Kospi climbed 0.6 percent to 2,043.78.
Germany’s DAX rose 0.6 per cent, while France’s CAC 40 gained 0.1 per cent. Britain’s FTSE 100 index added 0.2 per cent. Hong Kong’s Hang Seng index rose 0.4 percent to 22,548.55 while Australia’s S&P/ASX 200 dropped 0.5 percent to 5,525.20.
The stock market hit record highs on Friday after the Labor Department said USA employers added 255,000 jobs in July – far more than investors expected. Prices are expected to rise later this year as demand strengthens, according to the statement from Al-Sada on the OPEC website.
Elsewhere, silver futures also rose, with the September Comex contract up 0.20% or four cents to $19.85 an ounce, thereby extending the previous session’s decline.
The country produced 41.69 million tons of oil and gas condensate in 2015, or 0.8 percent less than in 2014, according to the State Statistical Committee of Azerbaijan. The yield on the 10-year Treasury note fell to 1.56 percent from 1.59 late Monday.
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CURRENCIES: The dollar weakened to 102.33 yen from 102.36 yen while the euro fell to $1.108 from $1.109.
