Oil Jumps as U.S Petroleum Institute Predicts Huge Drop in Crude Stock

Oil Jumps as U.S Petroleum Institute Predicts Huge Drop in Crude Stock

Crude oil prices increase on Wednesday on the expectation of a strong weekly drop in United States crude inventories, and a slowdown in covid-19 spreads on the back of expanded vaccination campaigns.

Increased vaccination across the world gives hope to oil rebound as productivities improve. International benchmark Brent crude printed at $75.44 a barrel on Wednesday after a 0.84% increase from $74.81 a barrel yesterday.

American benchmark West Texas Intermediate (WTI) traded at $73.34 a barrel at the same time for a 0.67% rise after ending the previous session at $72.85 per barrel.

In a recent report, the American Petroleum Institute (API) predicted a drop in US crude oil stockpiles of 7.2 million barrels, compared to the market expectation of a fall of 3.6 million barrels.

Oil analysts said a significant drop in inventories indicates an increase in crude demand in the US, assuaging market concerns about dwindling demand.

Supporting optimism in the oil market, the increased pace of global vaccination rates appears to be helping the upward oil price movement.

As of today, 22% of the world’s population has received at least one dose of a COVID-19 vaccine, according to Our World in Data, a tracking website.

Over 2.7 billion doses of coronavirus vaccines have been given worldwide so far although only 0.9% of people in low-income countries have received at least one dose.

Some experts, however, say a fourth wave of the virus is likely as countries ease mobility restrictions and a considerable number of people throughout the world are not fully vaccinated.

Bangladeshi authorities on Tuesday imposed a nine-day ban on public transport to and from the capital Dhaka in a bid to curb the spread of the coronavirus.

Russia reported 546 deaths from the coronavirus over the past 24 hours, health authorities said Tuesday, marking the highest single-day figure since Feb. 11.

Market players are now awaiting the decisions of the meeting of the OPEC+ scheduled for July 1. The group is expected to continue to increase supply due to the recovery in oil demand and prices.

Oil Jumps as U.S Petroleum Institute Predicts Huge Drop in Crude Stock

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