After a four-day streak of gains, futures on US West Texas Intermediate Crude Oil eased from Wednesday’s five-month high on Thursday, as fuel demand-related concerns offset a larger-than-expected drop in US crude oil inventories.
A report by the US Energy Information Administration showed on Wednesday that crude oil stocks had decreased by 7.373 million barrels during the week ended July 31st. In comparison, analysts on average had expected a 3.001 million decrease in inventories last week.
However, the EIA report also revealed an increase in refined product inventories in the country at a time when re-surging coronavirus has begun to weigh on economic recovery. US distillate inventories, which include diesel and heating oil, increased by 1.592 million barrels during the week ended July 31st. At the same time, US gasoline inventories unexpectedly increased by 0.419 million barrels last week, which marked a second consecutive week of rising stocks.
According to the EIA, gasoline demand remains at a level of about 8.6 million barrels per day, or almost 10% lower from a year ago.
Recent US Dollar depreciation has provided certain support to oil prices as well, since the commodity is priced in dollars.
As of 9:25 GMT on Thursday WTI Crude Oil Futures were retreating 0.59% to trade at $41.94 per barrel, while moving within a daily range of $41.65-$42.45. Yesterday US Oil climbed as high as $43.52, or to its highest level since March 6th ($46.38). WTI Crude Futures rose 1.54% in July, which marked their third straight month of gains. US Oil has risen 3.17% so far this week.
Brent Oil Futures were inching down 0.02% on the day to trade at $45.16 per barrel, while moving within a daily range of $44.86-$45.55. Yesterday UK Oil climbed as high as $46.23, or to its highest level since March 6th ($50.45). Brent Oil Futures rose 4.86% in July, which marked their fourth consecutive month of advance. UK Oil has risen 3.12% so far this week.
Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures
Central Pivot – $42.39
R1 – $43.32
R2 – $44.44
R3 – $45.37
R4 – $46.29
S1 – $41.27
S2 – $40.34
S3 – $39.22
S4 – $38.09
Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures
Central Pivot – $45.21
R1 – $46.19
R2 – $47.20
R3 – $48.18
R4 – $49.15
S1 – $44.20
S2 – $43.22
S3 – $42.21
S4 – $41.19