US crude stocks fell 7.1-million barrels in the week to August 12, Energy Information Administration data shows
In the long term, things are picking up with most of the S&P 500 companies
Employer group launches fresh legal attack on workplace Covid-19 vaccination policies but government will oppose this attempt to strike code down
The party’s internal leadership contest in December is expected to gain momentum once the the nomination process kicks off
Group markedly increases its quarterly dividend payout
The rand will continue to lose value if we don't adopt policies that create a superior emerging market with a far lower risk premium
Food Safety Agency tells retailers and food producers it will seize vegan products with names that it says are for meat
Unexpected resignation of the central bank governor has fuelled speculation about how the country will deal with mounting pressure on the Egyptian pound
SA rugby fans took a while to warm to competition
‘It is worrying that some other conditions, such as dementia and seizures, continue to be more frequently diagnosed after Covid-19, even two years later’
London — Oil fell further below $74 a barrel on Friday but was on track to end the week largely unchanged after rebounding from a sharp drop on Monday, underpinned by expectations that supply will remain tight as demand recovers.
The price of oil and other riskier assets tumbled at the start of the week on concern about the impact on the economy and demand as a result of surging cases of the Covid-19 Delta variant in the US, Britain, Japan and elsewhere.
Brent crude was down 11c, or 0.2%, at $73.68/bbl by 8.10am GMT after jumping 2.2% on Thursday. US West Texas Intermediate (WTI) dropped 18c, or 0.3%, to $71.73/bbl, after a 2.3% gain on Thursday.
“Clearly, oil bulls are back in town,” said Stephen Brennock at oil broker PVM. “But that is not to say that virus concerns have completely vanished.”
Brent was set to end the week flat, having declined in the previous three weeks. US crude was also poised to remain steady over the week.
Both contracts fell about 7% on Monday but have recouped all of those losses as investors expect demand to remain strong and the market to receive support from falling oil stockpiles and rising rates of vaccinations.
Demand growth is expected to outpace supply after Sunday’s deal by Opec and allies, known as Opec+, to add back 400,000 barrels daily each month from August.
The market was starting to sense the increase won’t be enough to keep the market balanced, and inventories in the US and across OECD countries continue to fall, ANZ Research analysts said in a report.
US crude stockpiles rose by 2.1-million barrels last week, up for the first time since May, government figures show. But stocks at the Cushing, Oklahoma delivery point for US crude hit their lowest since January 2020.
Would you like to comment on this article? Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.