Mixed Performance of Oil in Light of The Decline in US Stocks And The Lack of an OPEC+ Agreement

Oil prices varied on Friday, July 9, and are still on track to incur a weekly loss, between optimism due to the decline in US inventories, and uncertainty about global supplies due to the impasse currently afflicting OPEC +.

Brent crude futures fell only three cents to $74.09 a barrel, while US crude futures rose timidly by 0.1% to $73 a barrel.

Prices on both sides of the Atlantic are heading towards incurring a weekly loss of about 3%, as it is pushed down by the disruption of talks on production between the member states of the Organization of the Petroleum Exporting Countries and its allies, OPEC +.

On the other hand, the US Energy Information Administration said Thursday that crude and gasoline stocks fell, as demand for gasoline reached its highest level since 2019, indicating the strengthening of the economy.

Crude stocks fell by 6.9 million barrels in the week ending in the second of July to 445.5 million barrels, the lowest level since February 2020, contrary to estimates reported by Reuters, which suggested a decline of only 4 million barrels.

Gasoline stocks fell by 6.1 million barrels, exceeding expectations that indicated a decline of 2.2 million barrels.

Despite the rise in crude prices towards $ 75 a barrel, US shale oil companies maintain their pledges to keep production stable.