Another week, another draw report from the crude industry’s leading forecasters.
Oil price gains on Thursday as investors weigh on the effect of declining crude stockpiles.
The Brent crude futures managed to clinch a 0.05% hike during the session, sending the per-barrel price to $75.23.
The European benchmark is swiftly advancing to the $80.00 per barrel forecast by analysts from Goldman Sachs.
Earlier in the year, experts from the financial juggernaut gave the hit target amid predictions on constricted supplies and robust demand.
The West Texas Intermediate futures steadied at $73.08 per barrel after a 0.3% hike, still trailing on its counterpart’s gains.
Reports from the US Energy Information Administration showed a crude draw of 7.64 million barrels for the period ending June 18.
This is significantly better than the almost 4 million barrel draw expected by analysts earlier. This also extends the 7.35 million barrel draw incurred in the prior week.
In gasoline inventories, the result also came at better than initially anticipated after the final call came at 2.93 million barrels.
EIA’s report is in tone with the results from the American Petroleum Institute earlier.
The organization showed a 7.20 million barrel draw on Wednesday’s announcement, which lifted prices during the session.
Analysts noted that the continued draw reports over the weeks show the impressive global economic recovery.
The bettering environment on the world’s biggest economies namely the United States, China, and Europe all contributed to the improvement in demand.
Similarly, commodity strategists are hopeful on crude’s forward-looking trajectory. The vaccination programs all around the world will lead to the reopening of economies.
This, in turn, will increase appetite for fossil fuels, particularly for crude oil.
OPEC’s Meeting Will Provide Answers
Meanwhile, OPEC’s member states are scheduled to convene over the next weeks to discuss their plans.
The oil carter is set to discuss its production policy for August, in which traders hope for another round of easing on supply curbs.
Insiders noted that some member states are now calling for the output increase. This is due in large to the fact that demand has considerably recovered over the last months.
Earlier, de facto leader Saudi Arabia announced satisfaction with the gradual easing of supply restrictions that OPEC resorted into.
This is due to the ongoing uncertainty in big consumer markets, amid the still trudging vaccinations.
The push and pull on supply and demand will continue to dictate prices over the next weeks while no significant catalyst emerges