Oil prices edge lower as demand concerns outweigh tight supply

By Stephanie Kelly

– Oil costs fell on Thursday for a second straight session, as demand issues outweighed tight world provide after U.S. authorities knowledge confirmed tepid gasoline demand throughout the peak summer season driving season.

Brent crude futures fell 37 cents, or 0.3%, to $106.55 a barrel by 0003 GMT. WTI crude futures fell 33 cents, or 0.3%, to $99.55 a barrel.

Oil costs have been risky as merchants have needed to sq. tighter world provide due to the lack of Russian barrels following the nation’s invasion of Ukraine, with recessionary worries that might weaken vitality demand.

U.S. gasoline inventories rose 3.5 million barrels final week, authorities knowledge confirmed on Wednesday, far exceeding analysts’ forecasts in a Reuters ballot for a 71,000-barrel rise. [EIA/S]

Product provided of gasoline – a proxy for demand – was about 8.5 million barrels per day, or about 7.6% decrease than the identical time a 12 months in the past, the info confirmed.

“We count on Brent oil futures to fall to US$100/bbl by This autumn 2022, implying a modest fall from present ranges,” Commonwealth Financial institution commodities analyst Vivek Dhar stated in a notice.

In Libya, the Nationwide Oil Corp stated crude manufacturing has resumed at a number of oilfields, after lifting pressure majeure on oil exports final week.

Nevertheless, including to provide issues, certainly one of Canada’s main oil export arteries, the Keystone pipeline, was working at diminished charges for a 3rd day on Wednesday, operator TC Vitality stated in an announcement, as repairs continued on a third-party energy facility in South Dakota.