US oil inventories down 370,000 barrels last week: API
US crude oil inventories continued to decline last week, contrary to expectations. On the other hand, gasoline and distillate stockpiles rose, offering mixed signals about US energy demand.
Crude inventories fell by 370,000 barrels during the week ended June 6, contrary to expectations for a 700,000-barrel increase, the American Petroleum Institute (API) said in a report released June 10.
However, the report showed an increase of 2.97 million barrels in gasoline stocks, while distillate stocks—which include diesel and heating oil—jumped by 3.712 million barrels.
Investors are awaiting the Energy Information Administration's official inventory data, which is expected to reflect a decline by 2.4 million barrels.
At the close of June 10 trading, Brent crude futures for August delivery fell 0.25%, or 17 cents, to $66.87 a barrel.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Asharq Al-Awsat
an hour ago
- Asharq Al-Awsat
Oil Slips from Recent Highs as Market Assesses Middle East Tension
Oil prices fell on Thursday after sharp gains in the previous session as market participants assessed a US decision to move personnel from the Middle East ahead of talks with Iran over the latter's nuclear-related activity. Brent crude futures were down $1.31, or 1.9%, at $68.46 a barrel at 1202 GMT, while US West Texas Intermediate crude was $1.32, or 2%, lower at $66.83 a barrel, Reuters reported. A day earlier both Brent and WTI surged more than 4% to their highest since early April. US President Donald Trump said the US was moving personnel because the Middle East "could be a dangerous place". He also said the US would not allow Iran to have a nuclear weapon. Iran has said its nuclear activity is peaceful. Increased tension with Iran has raised the prospect of disruption to oil supplies. The sides are set to meet on Sunday. "Geopolitical risk premia tend to fade if there are no supply disruptions. We are still higher than two days ago as some short investors prefer to stay on the sidelines amid the uncertainty," UBS analyst Giovanni Staunovo said. On Wednesday Britain's maritime agency warned that increased tensions in the Middle East may lead to an escalation in military activity that could impact shipping in critical waterways. It advised vessels to use caution while travelling through the Gulf, the Gulf of Oman and the Straits of Hormuz, which all border Iran. "For the oil market, the absolute nightmare is a closure of the Strait of Hormuz," Global Risk Management analyst Arne Rasmussen said in a LinkedIn post. "If Iran blocks this narrow chokepoint, it could affect up to 20% of global oil flows," he added. JPMorgan said oil prices could surge to $120-$130 a barrel if the strait were to be shut, a scenario the bank considered to be severe but low-risk. The US meanwhile is preparing a partial evacuation of its Iraqi embassy and will allow military dependents to leave locations in the Middle East due to heightened security risk in the region, Reuters reported on Wednesday citing US and Iraqi sources. Iraq is the second-biggest crude producer after Saudi Arabia in the Organization of the Petroleum Exporting Countries. A senior Iraqi oil official told Reuters foreign energy firms continue operating normally in the country. Trump has repeatedly said the US would bomb Iran if the two countries cannot reach a deal regarding Iran's nuclear-related activity including uranium enrichment. Iran's Minister of Defense Aziz Nasirzadeh on Wednesday said Iran will strike US bases in the region if talks fail and if the US initiates conflict. US Special Envoy Steve Witkoff plans to meet Iranian Foreign Minister Abbas Araghchi in Oman on Sunday to discuss Iran's response to a US proposal for a deal. The UN nuclear watchdog's 35-nation Board of Governors declared Iran in breach of its non-proliferation obligations on Thursday for the first time in almost 20 years, raising the prospect of reporting it to the UN Security Council.
Asharq Al-Awsat
7 hours ago
- Asharq Al-Awsat
Gold Climbs on Rising Middle East Tensions, Weaker Dollar
Gold prices rose on Thursday, bolstered by rising tensions in the Middle East and a weaker dollar, while softer-than-expected US inflation data boosted expectations of Federal Reserve rate cuts. Spot gold was up 0.6% at $3,373.09 an ounce, as of 0552 GMT. US gold futures gained 1.5% to $3,393.80. The US dollar index fell to a near two-month low, making greenback-priced bullion more attractive to overseas buyers. The weakness in the dollar index serves as a strong catalyst, said Kelvin Wong, a senior market analyst, Asia Pacific at OANDA, adding that a "bullish breakout" of the $3,346 resistance triggered technical buying. Rising geopolitical risks aided safe-haven assets, with President Donald Trump announcing on Wednesday that US personnel were being moved out of the Middle East due to heightened security risks amid rising tensions with Iran. Meanwhile, US consumer prices increased less than expected in May, driven by cheaper gasoline, though inflation could accelerate due to import tariffs. The data prompted renewed calls from Trump for significant rate cuts. "We could potentially see the Fed moving more quickly than anticipated, given the CPI data, which is not particularly alarming at this juncture," Wong said. Traders expect 50 basis points of rate cuts by year-end. Investors awaited US producer price index data due at 1230 GMT for further clues on rate cut path. Meanwhile, Trump said on Wednesday that Washington and Beijing had agreed on a framework to restore a fragile truce in the US-China trade war, potentially avoiding higher tariffs. Trump added he could extend a July 8 deadline for trade talks with other nations before higher US tariffs take effect. Elsewhere, spot silver was up 0.4% at $36.38 per ounce, platinum rose 1.2% to $1,271.15, still hovering near a more than 4-year high, while palladium was down 1.1% at $1,068.19.
Arab News
7 hours ago
- Arab News
World Bank to end ban on nuclear energy projects, still debating upstream gas
WASHINGTON: The World Bank's board has agreed to end a longstanding ban on funding nuclear energy projects in developing countries as part of a broader push to meet rising electricity needs, the bank's president Ajay Banga said on Wednesday. Banga outlined the bank's revised energy strategy in an email to staff after what he called a constructive discussion with the board on Tuesday. He said the board was not yet in agreement on whether the bank should engage in funding the production of natural gas, and if so, under what circumstances. The global development bank, which lends at low rates to help countries build everything from flood barriers to railroads, decided in 2013 to stop funding nuclear power projects. It announced in 2017 it would stop funding upstream oil and gas projects beginning in 2019, although it would still consider gas projects in the poorest countries. The nuclear issue was agreed fairly easily by board members, but several countries, including Germany, France and Britain, did not fully support changing the bank's approach to embrace upstream natural gas projects, sources familiar with the discussion said. 'While the issues are complex, we've made real progress toward a clear path forward on delivering electricity as a driver of development,' Banga said, adding that further discussion was required on the issue of upstream gas projects. Banga has championed a shift in the bank's energy policy since taking office in June 2023, arguing the bank should pursue an 'all of the above' approach to help countries meet rising electricity needs and advance development goals. In his memo, he noted that electricity demand was expected to more than double in developing countries by 2035, which would require more than doubling today's annual investment of $280 billion in generation, grids and storage. The Trump administration has been pushing hard for ending the ban on nuclear energy projects since taking office. The US is the bank's single largest shareholder — at 15.83 percent, followed by Japan with 7 percent and China with close to 6 percent — and the bank's decision to broaden its approach to energy projects will likely please President Donald Trump, who withdrew the US from the Paris Climate Agreement and its emission-reduction targets as one of his first acts in January. Twenty-eight countries already use commercial nuclear power, with 10 more ready to start and another 10 potentially ready by 2030, according to the Energy for Growth Hub and Third Way. Banga said the World Bank Group would work closely with the International Atomic Energy Agency to strengthen its ability to advise on nuclear non-proliferation safeguards, safety, security and regulatory frameworks. The bank would support efforts to extend the life of existing nuclear reactors, along with grid upgrades. It would also work to accelerate the potential of small modular reactors. ENERGY MIX Trump administration officials and some development experts say developing countries should not be blocked from using inexpensive power to expand their economies while advanced economies like Germany continue to burn fossil fuels. But climate activists worry that funding more nuclear and natural gas projects will divert funds away from urgently needed efforts by developing countries to adapt to climate change and benefit from abundant alternative energy sources such as solar. 'Net zero does not mean fossil fuel free. It means, still, that there will be 20 percent energy coming from fossil fuels,' said Mia Mottley, prime minister of Barbados. 'We know natural gas is that clean fuel.' Banga said the bank's revised strategy would allow countries to determine the best energy mix, with some choosing solar, wind, geothermal or hydroelectric power, while others might opt for natural gas or, over time, nuclear. He said the bank would continue to advise on and finance midstream and downstream natural gas projects when they represented the least-cost option, aligned with development plans, minimized risk and did not constrain renewables. The bank would further study evolving technologies like carbon capture and ocean energy, Banga said, adding it aimed to simplify reviews and approvals. Banga said the bank would continue advising on and financing the retirement of coal plants, supporting carbon capture for industry and power generation, but not for enhanced oil recovery, which can typically secure commercial financing.
