Oil prices rallied overnight as expectations (prompted by API's report last night) of inventory drawdowns dominated fears of a Delta-driven drop in demand.
"This price catalyst may inject some much-needed momentum into proceedings, especially after the API set a bullish tone," said Stephen Brennock of broker PVM, referring to the EIA report.
But, a rising number of coronavirus cases worldwide, despite vaccination programs, has limited the upside for oil and remains a concern.
Crude -4.728mm (-2.55mm exp)
Crude -4.09mm (-2.55mm exp)
Official EIA data confirmed API's report that inventories drew down across all segments...
Gasoline demand was steady for the 3rd straight week after the July 4th spike...
US crude production continues to remain relatively well disciplined, but had started to accelerate amid high prices and high rig counts. Last week saw production slip back however (-200k b/d)...
WTI hovered right below $72 ahead of the EIA data and rallied back above it on the draws...