Crude in New York fell to the lowest market since May after the amazement increase in U.S. gasoline inventories offered an indication of a fall in the demand of fuel across the country amid the increased worries of the spread of Delta variant.
West Texas Intermediate finished the trading session with a drop of 1.7% to get settled at USD65.46 a barrel, with a decline in the prices for five days in a row. Futures dropped below USD65 for the very first time since May. Senior market analyst Phil Flynn said that the latest data from the Federal Reserve meeting implied that narrowing of monthly asset procurements might start as soon as this year, a step that may help in strengthening the economy and reduce the petition of commodities valued in the currency.
Local gasoline stockpiles inventories raised by 696,000 barrels, the starting surge in more than a month, as per the data disclosed by EIA on Wednesday, August 18, 2021. In the meantime, Crude stockpiles fell by a greater than the estimation of 3.23 million barrels.
Head of global commodity strategy at TD Securities, Bart Melek, said that after the release of EIA data, the market first reacted optimistically, but as the traders evaluated the situations with a demand risk perspective, the tune was changed ultimately. He further added that the brawnier dollar had an extra effect, but at what position it comes down, that’s what the market is eying on as the delta continued to spread across the country. Crude raised during the first half of the 2021 as the vaccination drive took a spur across several regions. But the march was halted with the arrival of new variants of the COVID-19.