Marginal Rise In Oil As Markets Weigh Inventory Data, US Ratings Downgrade
Prices of oils rose marginally in the early Asian trading on Thursday, as the markets weighed on optimistic U.S inventory data on Wednesday and precisely an extension of OPEC+ cuts on output against the consequences of Fitch’s downgrade of the top credit of the U.S. government.
Prices of oils rose marginally in the early Asian trading on Thursday, as the markets weighed on optimistic U.S inventory data on Wednesday and precisely an extension of OPEC+ cuts on output against the consequences of Fitch’s downgrade of the top credit of the U.S. government. Brent crude futures increased 27 cents, or 0.32%, to $83.47 per barrel by 0001 GMT, whereas U.S West Texas Intermediate crude jumped by 0.39%, or 29 cents, to $79.78 per barrel.
Both the thresholds have been trading nearly at their highest levels since April on Wednesday but closed down at 2% despite the risk-inflicted sentiments of the investors following the Fitch downgrade.
The rating agency Fitch downgraded USA’s long-term foreign currency ratings from AA+ to AAA on Tuesday. The reflection expected a fiscal deterioration in the upcoming three years, along with concerns over a high and developing general government debt burden, the American dollar’s international status, and the country’s political polarization.
The three main indexes in Wall Street closed lower, while Treasury yields increased on Wednesday as uncertainty undulated through the financial markets.
“Despite the broader bearish sentiment, prices continue to see support from a tightening supply backdrop. U.S. crude stocks fell by a record 17 million barrels last week as refiners stepped up runs and exports topped 5 million barrels per day (bpd),”
the Energy Information Administration announced on Wednesday.
The inventory drawdown, which extensively exceeded the expectations of the analysts in a Reuters poll of 1.4 million barrels, hinted at global demand outpacing supply as deeper cuts from big producers continue.
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