Oil is Rising After a Bigger-Than-Expected decline Oil Inventories

Oil prices rose on Wednesday, August 12, after a report from the sector showed that US crude stocks fell by more than analysts’ expectations, boosting hopes that demand for fuel in the world’s largest economy can survive the Coronavirus pandemic.

Brent crude rose 52 cents, or 1.2%, to $ 45.02 a barrel by 0648 GMT, after falling nearly 1% on Tuesday.

US West Texas Intermediate crude rose 49 cents, or 1.2%, to $ 42.10 a barrel, after falling 0.8% in the previous session.

The American Petroleum Institute said on Tuesday that crude inventories fell by 4 million barrels last week, which is more than what analysts had expected for a decrease of 2.9 million barrels. Official government statements are due to be released later on Wednesday.

But growing uncertainty about a falter in Washington during talks about a stimulus package to support recovery from the worst impact of the pandemic could put pressure on prices in the future.

In India, government data showed yesterday, Tuesday, that the demand for fuel in July fell 10.8% from its level a year ago, recording a decline for the fifth month in a row on an annual basis, in light of the high cases of Coronavirus and floods sweeping many parts of the country, which led to the restriction of economic activity. .