- For the third week, Oil prices have dropped in a row.
- Between June 21 and July 19, The commercial crude inventories of the U.S. decreased by 24 million barrels.
- China’s economy and future oil demand are keeping the prices of oils low.
U.S. commercial crude stocks have been falling at quick bases in this summer. But the falling rate hasn’t boosted the price of Oils because of the demand in China. Although in the Middle East tensions are rising about Oil prices the prices have dropped for the third week in a row. According to the EIA from June 21 to July 19 U.S. crude inventories fell by 20 million barrels. According to Kemp the money managers have repurchased most short positions in WTI crude oil and left little place to raise the prices.
Despite the decline of the U.S. crude inventories and higher gasoline demands last week, WTI crude prices fell below 80 dollars per barrel. The weak demand in China and less tight crude market have just limited the oil price gains even when the prices are increasing in Middle East tensions. The EIA report showed a 3.7 million barrel inventory drop for the week ending of July 19, following a 4.9 million barrel drop in the previous week. The stock of Gasoline fell by 5.6 million barrels and the production increased to 10.2 million barrels per day.
The bullshit report on U.S. inventories the prices didn’t stay high because of a risk-off mood in the oil market and the worries about China’s low demand for Oil. According to analysts at FGE, the high gasoline demand could be because of the delay in deliveries after Hurricane Beryl. Without the sustained stock draws the crude price increases, might be limited. In the strong hurricane season or escalating tensions in the Middle East could support prices. However, China’s economic tensions and oil demands could continue to push the prices lower. It can lead OPEC+ to delay the easy production cuts expected in the fourth quarter.