Oil Extends Advance as Shrinking US Crude Stockpiles Buoys Mood - Yahoo Finance
Oil Extends Advance as Decline in US Crude Stockpiles Buoys Mood
(Bloomberg) -- Oil rose for a second day as signs of growing demand bolstered prices, with broader financial markets carrying a risk-on tone.
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West Texas Intermediate rose above $82 a barrel after a 0.9% gain on Wednesday, with Brent closing near $85. Nationwide US stockpiles fell by 3.4 million barrels last week, with gauges of jet fuel and gasoline consumption both rising in the world’s largest consumer as the summer travel season continues.
Crude has pushed higher this year, helped by OPEC+ supply cutbacks, although relatively muted price moves have caused volatility to decline to six-year lows. While some nations in the producer group are continuing to pump above agreed output limits, linchpin Russia made noticeable reductions in June.
Traders will be watching for a monthly market snapshot from the International Energy Agency later on Thursday for its assessment of global crude balances this half. In addition, US jobs and inflation data will offer clues on the path forward for monetary policy from the Federal Reserve.
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Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.