Oil Swings in Thin Trading, Shrugging Off Stockpile Drawdown - Yahoo Finance
Oil Edges Up as Traders Take US Crude Stockpile Drop in Stride
(Bloomberg) -- Oil edged up in a thinly traded summer session, settling above $81 a barrel, as the market took a substantial drop in US crude stockpiles in stride.
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US inventories fell 10.6 million barrels last week to the lowest since December, according to an Energy Information Administration report. Yet crude’s reaction to the report was muted, and prices even temporarily dipped lower as the drawdown was in line with several industry reports.
“The reaction reflects a bit of apathy as summer draws to an end and concerns about additional supply into year end,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
Meanwhile in Africa, soldiers seized power in OPEC member Gabon. Army officers appeared on state television to announce they’d canceled Saturday’s election and dissolved the country’s institutions. There were no reports of interruptions to crude output or exports.
After a sharp ascent in July, crude prices have leveled off in August, holding around $80 a barrel. Trading volumes were below average levels on Wednesday, and market volatility for US crude futures is at the lowest since 2020, underscoring a lack of major moves of late.
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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.