World oil prices are falling on August 3 as a result of the lower-than-expected decrease in the United States crude stocks. Late in the day, the American Petroleum Institute rattled the nerves of traders when it reported a build in USA crude oil inventories of about 1.8 million barrels and a strong gain for gasoline stocks.
Olivier Jakob, managing director of Switzerland-based consultant Petromatrix, said through his official Twitter account that USA monthly data show US oil demand was “very strong”.
West Texas Intermediate for September delivery was at $49.75 a barrel on the New York Mercantile Exchange, up 16 cents, at 8:05 a.m. local time. Brent Crude Oil price at London’s IСE Stock Exchange up by 1.68% to $52.19 per barrel.
Refinery crude runs rose by 123,000 barrels per day, EIA data showed.
Petromatrix strategist Olivier Jakob said yesterday’s price rise had more to do with technical trading than fundamentals.
Current prices hold at the exact line of 200 day moving average which indicates neutral market.
USA crude imports rose last week by 537,000 barrels per day. USA oil production rose to the highest level since July 2015.
Oil prices fell sharply on Wednesday, and have come under pressure in recent sessions on news top oil producing countries may be boosting output.
Private payroll processor ADP, meanwhile, reported private sector employment increased from June to July by 178,000, with the services sector far outpacing manufacturing.
Barrel is the unit of measurement of oil volume.
Energy consultancy Douglas Westwood predicted that the oil market glut will return next year and last until 2021.