Energy
Wednesday, July 24th, 2024 6:09 pm EDT
Key Points
- Crude Oil Prices Rebound: U.S. crude oil futures increased by more than 1% on Wednesday, reversing a three-day decline. This rebound was driven by a drop in stockpiles, rising gasoline demand, and concerns about supply disruptions due to ongoing wildfires in Canada.
- Stockpile and Demand Data: U.S. crude oil stockpiles decreased by 3.7 million barrels, and gasoline inventories fell by 5.6 million barrels for the week ending July 19. Gasoline supplied to the market, a key indicator of demand, rose by 673,000 barrels per day.
- Wildfire Impact and Market Trends: Wildfires in Alberta, Canada, continue to pose risks to oil supply despite stable production levels. The crude oil market had previously fallen nearly 2% on Tuesday due to hopes for a cease-fire in the Gaza region and disappointing gasoline demand in the U.S. this summer.
U.S. crude oil futures rebounded more than 1% on Wednesday, ending a three-day losing streak, driven by a decrease in stockpiles, rising gasoline demand, and concerns over potential supply disruptions due to wildfires in Canada. According to the Energy Information Administration, U.S. crude stockpiles fell by 3.7 million barrels, and gasoline inventories declined by 5.6 million barrels for the week ending July 19. This decrease in stockpiles coincided with an increase in gasoline supplied to the market, which rose by 673,000 barrels per day, signaling stronger demand.
As of today, West Texas Intermediate (WTI) crude oil for September delivery was priced at $77.37 per barrel, marking a gain of 41 cents or 0.53% from the previous day. On a year-to-date basis, U.S. crude oil has risen by 8%. Brent crude, the global benchmark, was priced at $81.29 per barrel, up 28 cents or 0.35%, with a year-to-date increase of 5.57%. RBOB gasoline for August delivery was trading at $2.45 per gallon, up 3 cents or 1.32%, and has seen a year-to-date rise of 16.3%. In contrast, natural gas for August delivery decreased by 3 cents or 1.74% to $2.14 per thousand cubic feet, reflecting a year-to-date decline of 14.5%.
The rise in crude oil prices comes amidst ongoing wildfires in Alberta, Canada. Despite stable oil production levels in Canada, there are concerns that the worst of the wildfire season, which lies ahead, could threaten supply stability. A note from Goldman Sachs highlighted these potential risks to oil supplies due to the fires.
In recent trading, U.S. crude oil had dropped nearly 2% on Tuesday, marking its third consecutive day of losses. This decline was influenced by renewed optimism regarding a potential cease-fire in the Gaza region, which might reduce tensions in the Middle East, and a less-than-expected gasoline demand in the U.S. over the summer. The market’s rebound on Wednesday reflects a reaction to the reduced stockpiles and increased demand, alongside ongoing concerns about supply disruptions from external factors like the wildfires in Canada.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/07/24/crude-oil-prices-today.html
