Global oil news and oil prices changes today

Global oil news and oil prices changes today, Thu, 8 August

Oil Prices Rebound After Steep Decline in U.S. Crude Inventories

Oil prices have rebounded in recent days, with West Texas Intermediate (WTI) crude trading above $75 per barrel and Brent crude closing near $78. This recovery comes after oil prices fell to multi-month lows earlier in the week due to concerns about a potential recession.

The rebound was driven by several key factors:

U.S. Crude Inventory Draw
Data from the U.S. Energy Information Administration (EIA) showed a steep 3.7 million barrel decline in U.S. commercial crude oil inventories for the week ending August . This left total inventories at 429.3 million barrels, about 6% below the five-year average for this time of year[.

Tensions in the Middle East
Concerns remain high that Iran may retaliate against Israel following the recent assassinations of Hezbollah and Hamas leaders. Israel continues to brace for a potential attack.

OPEC+ Production Cuts
Ongoing production cuts by OPEC+ have also helped stabilize prices. Citi Research said oil prices could rise to the low-to-mid-$80s, bouncing up from the recent sell-off, citing the OPEC+ cuts and other factors.

However, some bearish factors remain:

– Chinese crude oil imports in July averaged 10.01 million barrels per day, down 3.1% year-on-year and 11.8% lower month-on-month.
– Total motor gasoline inventories in the U.S. increased by 1.3 million barrels last week and were about 2% below the five-year average.

Overall, the oil market remains on edge as traders weigh the potential for supply disruptions from the Middle East against concerns about weakening demand. Prices have rebounded from recent lows but remain well below the highs seen earlier this year.

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