Crude oil futures moved very little in price Wednesday as this week’s rally eased after Department of Energy data indicated soft demand for gasoline last week.
Oil prices were more than 1% higher earlier in the session, but pulled back after the U.S. reported a 3.7-million-barrel crude build for last week, compared with analyst expectations of a one-million barrel draw.
Gasoline stockpiles rose by 2.6 million barrels while demand increased by 94,000 barrels per day. Fuel demand has been tepid compared to last year despite the start of the summer driving season.
Prices were as follows:
West Texas Intermediate July contract: $77.94, up 4 cents. Year to date, U.S. oil has gained 8.7%.
Brent August contract: $82.03 per barrel, up 11 cents. Year to date, the global benchmark is ahead 6.4%.
RBOB Gasoline July contract: $2.39 per gallon, down 0.56%. Year to date, gasoline has advanced 14%.
Natural Ga: July contract: $3.05 per thousand cubic feet, down 2.27%. Year to date, gas is up 21.5%.
Still, the Department of Energy sees global demand rising this year by 1.1 million bpd, up from a previous forecast of 900,000 bpd. The increased demand implies a supply deficit with world production expected to rise 800,000 bpd in 2024.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) stuck to its demand growth forecast of 2.2 million bpd on solid global economic growth of 2.8% this year. Those forecasts clashed with a bearish outlook from the International Energy Agency, which sees weakening demand and rising supplies.
