By Jessica Jaganathan
SINGAPORE (Reuters) -Oil costs fell on Thursday as stock information in the USA, the world’s prime oil client, confirmed a surge in gasoline shares that signifies weaker-than-expected gasoline demand at the beginning of summer season, the nation’s peak season for motoring.
Brent crude oil futures had been down 55 cents, or 0.8%, at $71.67 a barrel by 0341 GMT, whereas U.S. oil futures declined by 53 cents, or 0.8%, at $69.43 a barrel.
“Markets had been optimistic on demand because the U.S. enters the height summer season driving season,” analysts from ANZ Analysis mentioned in a observe on Thursday.
“An acceleration in (coronavirus) vaccinations and rising visitors numbers are a plus for demand for transportation gasoline. Nevertheless, this information highlights it will not be a easy highway again to restoration.”
U.S. crude oil stockpiles that embody the Strategic Petroleum Reserve (SPR) fell for the eleventh straight week as refiners ramped up output, however gasoline inventories grew sharply because of weak client demand, the Power Info Administration (EIA) mentioned on Wednesday. [EIA/S]
Crude inventories that exclude the SPR fell by 5.2 million barrels within the week to June 4 to 474 million barrels, the third consecutive weekly drop. However gasoline shares had been up sharply, with product equipped falling to 17.7 million barrels per day (bpd) versus 19.1 million the week earlier than.
Gasoline demand fell to eight.48 million bpd within the week to June 4, down from 9.15 million bpd from the week earlier than, however up from 7.9 million bpd a yr in the past, EIA information confirmed.
In one other growth weighing on costs, Libya’s Waha Oil Co goals to return to regular output operations on Thursday after fixing a leak on a pipeline that greater than halved the corporate’s oil manufacturing, an oil supply on the Es Sider crude export terminal mentioned.
In India, the world’s third-largest oil client, gasoline demand slumped in Might to its lowest since August final yr, with a second COVID-19 wave stalling mobility and muting financial exercise on the planet’s third largest oil client.
(Reporting by Jessica Jaganathan; Enhancing by Kenneth Maxwell)
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