Oil recovers after hitting multi-month lows as surprise stock builds

Oil prices recovered slightly in Asia trading Thursday morning, having previously fallen to a multi-month low on the back of a sudden surge in inventories signaling a decline in US demand.

What happened: According to the Energy Information Administration (EIA), US crude inventories rose 4.5 million barrels to 426.6 million barrels in the week ended July 29. Gasoline inventories also posted a surprising increase as demand faltered.

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Crude inventories in the Cushing, Oklahoma, US futures delivery hub rose 926,000 barrels during the week, Reuters reported.

Expert Take: “You would expect exports to surge as the Brent/WTI spiraled out of control, but exports have fallen more than a million barrels this week,” Bob Yawger, Mizuho’s director of energy futures, said. the report .

Supply-side developments: The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, called OPEC+, have decided to increase the group’s production target by 100,000 barrels per day from September.

Price Action: West Texas Intermediate (WTI) futures were up 0.58% and trading close to $91.19/barrel. Brent futures gained 0.42% and traded at $97.19 a barrel. Earlier, both benchmarks had fallen to their lowest levels since February.

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This post Oil recovers after hitting multi-month lows as surprise stock builds was original published at “https://www.benzinga.com/news/22/08/28347022/oil-rebounds-on-thursday-morning-session-after-falling-to-multi-months-earlier-low-dragged-by-low-de”

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