Oil prices remained stable on Tuesday ahead of the release of US inventory data, as investors concerned that rising COVID-19 cases will dampen global demand, despite tightening supply and improving vaccination rates. According to two market sources citing American Petroleum Institute numbers on Tuesday, crude Oil, gasoline, and distillate stockpiles in the United States dropped last week. After the API data, crude prices in the United States settled marginally lower and pared losses.
According to the sources, Oil stocks declined by 4.7 million barrels for the week ending July 23, gasoline inventories fell by 6.2 million barrels, and distillate inventories fell by 1.9 million barrels, according to API statistics. According to Reuters polled analysts, crude stocks in the United States declined by 2.9 million barrels and gasoline stocks fell by 900,000 barrels in the week ending July 23. The US Energy Information Administration is expected to release official inventory statistics on Wednesday.
Brent crude futures declined 2 cents to close at $74.48 a barrel, while WTI crude in the United States fell 26 cents, or 0.4 percent, to $71.65. Brent has dropped for the first time in six days. As markets reacted to the API report, U.S. Oil pared losses in post-settlement activity, trading at $71.89 a barrel by 5:06 p.m. ET. Since March, the United Kingdom has had the highest number of deaths and patients admitted to hospitals due to coronavirus.
According to sources, the US Centers for Disease Control and Prevention (CDC) was planning to recommend that fully vaccinated Americans wear masks indoors in some cases. Because of an increase in COVID-19 cases, the US has issued travel warnings to Spain and Portugal.