SULAIMANI (ESTA) — Oil prices extended gains on Thursday as crude stockpiles in the United States felt to their lowest since January 2020.
Brent crude futures gained 37 cents to $75.11 a barrel by 0648 GMT, while U.S. West Texas Intermediate (WTI) crude futures increased by 40 cents to $72.79 per barrel.
Brent topped $75 a barrel for the first time in more than two years in June, but fell back sharply earlier this month on fears about the rapid spread of the Delta variant and a compromise deal by leading OPEC producers to increase supply.
“The [oil inventory] falls suggest the rise in cases of COVID-19’s Delta variant is having little impact on mobility,” Reuters quoted ANZ analysts as saying.
U.S. Energy Information Administration (EIA) said crude inventories fell by 4.1 million barrels in the week to July 23, according to Reuters.
Gasoline stocks also dropped, bringing them largely in line with pre-pandemic levels.
Still, some worries on fuel demand remain with gasoline demand in the United States and Europe beginning to plateau, Reuters reported.
The news agency cited analysts as saying that globally, pre-pandemic demand levels may not be seen until beyond next year if COVID-19 infections and the slow pace of vaccinations further entrench structural changes in demand.
