Oil remains firm, boosted by demand in the US

Oil prices rose again yesterday, driven by an increase in US demand for refined products and a tightening of the geopolitical context. Brent for delivery in August rose 0.75% yesterday and closed at $85.71 a barrel.

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US WTI crude oil due in July gained 0.73% to $82.17. That reference has been positive for seven sessions in eight days of trading, and This Thursday it reached its highest level since the end of April, just like Brent. For Phil Flynn of Price Futures Group, oil benefited from the publication of the US Energy Information Agency (EIA) report, which showed a 2.5 million barrel contraction in crude oil inventories last week.

According to the analyst, operators were especially interested in the increase in refined products delivered to the US market (9.6% in one week), an implicit indicator of demand. Gasoline deliveries hit their highest level in almost a year. The news helped reassure the market, which had raised doubts about the strength of US demand. After an initial rally immediately after the release of the EIA report, prices lost momentum.

According to Flynn, this was due to profit-taking ahead of Friday’s session, which promises to be hectic. This date coincides with the so-called Day of the Three Witches.when derivative contracts on stock indices and stocks expire, which usually causes an increase in volatility.

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AFP