BUSINESS Oil prices gain after US inventories drop

BUSINESS

Oil prices gain after US inventories drop

Xinhua

07:11, July 30, 2020

d4c53e26bef64033a7495010842276bd.jpgFile photo: CGTN

NEW YORK, July 29 (Xinhua) -- Oil prices climbed on Wednesday after data showed a noticeable decline in U.S. crude stockpiles.

The West Texas Intermediate for September delivery gained 23 cents to settle at 41.27 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery rose 53 cents to close at 43.75 dollars a barrel on the London ICE Futures Exchange.

U.S. crude oil inventories decreased by 10.6 million barrels during the week ending July 24, the U.S. Energy Information Administration reported Wednesday. Analysts polled by S&P Global Platts had forecast a decline of 1.2 million barrels.

Oil prices also got a lift from the weak U.S. dollar as there is normally a reverse correlation between the foreign exchange value of the U.S. dollar and oil prices.

The dollar index, which measures the greenback against six major peers, slid 0.23 percent at 93.4759 in late trading on Wednesday.

Yet, traders continue to fret over the outlook for energy demand amid soaring U.S. coronavirus cases.

As of Wednesday afternoon, the United States has reported roughly 4.4 million COVID-19 cases and over 150,000 deaths -- both figures the highest worldwide.


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