Oil steady, remains above $70 a barrel
Oil retained its two-day gain above $70 a barrel, boosted by a decrease in US fuel and distillate stockpiles and a broader market rally.
West Texas Intermediate held steady in early Asian trading after an increase of over 4% on Wednesday. Gains in equities emboldened investors, spurring their appetite for risk despite global worries about the fast-spreading Delta variant of the coronavirus’ possible impact on energy demand.
Crude, which had been experiencing ups and downs during the week, took a dive on Monday amid pandemic concerns and the Organization of Petroleum Exporting Countries and allies’ (OPEC+) plans to increase supply. However, the commodity bounced back again as Energy Information Administration reported that oil inventories at the key storage hub in Cushing, Oklahoma dropped to the lowest since January of last year.
In other oil news, Brent’s time spread was 62 cents a barrel in backwardation, comparing with Monday’s 57 cents a barrel.