Oil drops amid US call for output boost

12.08.2021 - Davydova Maria
Oil drops amid US call for output boost

Oil went down on Thursday in Asia after its two-day gain. The black liquid suffered a setback after the US, the top oil consumer globally, called for major producers to increase output. This bolstered supply concerns as economies ease COVID-19 restrictions.

Brent crude futures fell 0.2%, or 17 cents, to $71.27 a barrel by 0650 GMT, after its earlier rise to a session high of $71.69.

Meanwhile, US West Texas Intermediate (WTI) crude futures dropped 0.3%, or 23 cents, to $69.02, following its earlier climb to $69.51.

On Wednesday, US President Joe Biden’s administration appealed to the Organization of the Petroleum Exporting Countries and allies (OPEC+) to boost oil production to deal with rising gasoline prices that they view as a threat to global economic recovery.

The OPEC+ agreed in July to increase output each month by 400,000 barrels per day over the previous month, starting in August. This would continue until the rest of the record cuts of 10 million bpd, or about 10% of global demand, made in 2020 are phased out.

However, worries that the increase will not be enough to meet the US and Europe’s demand still remain.

In related news, the US crude stockpiles dropped modestly in the previous week, while gasoline inventories fell to their lowest levels since November.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?