Keeping an eye on bunkers. Your weekly bunker update powered by InterContinental Bunkering.
Oil futures rose this morning after lower than expected crude inventories in the United States, and despite an increase in coronavirus cases lightly clouding a positive demand outlook.
At 3.45 am GMT front-month Brent futures were up 48 cents (1.2%), to $41.75 a barrel. WTI was up 54 cents (1.4%), at $39.81 a barrel.
According to data from the American Petroleum Institute (API), crude stocks dropped by 8.2 million barrels to 537 million barrels, against analysts’ forecasts for a draw of 710,000 barrels.
Gasoline inventories were significantly down as well, while distillates stocks rose.
Supporting prices was also at a 20 year low in June output from OPEC+ members, at 22.62 million bpd.
Despite record levels of compliance at 107%, it is likely that such compliance will slip again in July. ConocoPhillips will start increasing production in its North American oilfields in July, after curtailing 460,000 boe/d in June.
A Reuters poll suggests that oil prices will consolidate at around $40 a barrel this year, with a potential recovery in the fourth quarter.
As the return of lockdown is looming in certain states and US citizens are banned from travelling to Europe, bullish market sentiment is dampened, capping any strong recovery in crude prices in the short term.
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Loading…Prices quoted in US$ per mT and are purely indicative and only to be used as guidance. Prices in cursive are of a previous date. Other ports are available upon request. For last price updates and/or updates on product availability & earliest delivery dates, do not hesitate to contact us as markets are volatile. www.icbunkering.com