Oil Prices Up On Expected Drop In US Oil Stocks Despite Rising Virus Cases

Faizan Hashmi Published July 28, 2021 | 01:10 PM

ANKARA , 28 July (UrduPoint / Pakistan Point News - 28th Jul, 2021 ) -:Crude oil prices increased on Wednesday after estimates of a weekly drop in US crude inventories, signaling that oil demand will continue recovering despite rising coronavirus cases.

International benchmark Brent crude was trading at $73.85 per barrel at 07.17 GMT for a 0.45% increase after closing Tuesday at $73.52 a barrel.

American benchmark West Texas Intermediate (WTI) traded at $72.03 a barrel at the same time for a 0.53% rise after ending the previous session at $71.65 per barrel.

Late Tuesday, the American Petroleum Institute (API) predicted a drop in US crude oil stockpiles of 4.7 million barrels, compared to the market expectation of a fall of 3.4 million barrels.

A significant drop in inventories indicates an increase in crude demand in the US, the world's largest oil consumer, assuaging market concerns about dwindling demand.

The US Energy Information Administration (EIA) will issue official oil stock figures later on Wednesday. If the EIA also reports a drop in inventory, oil prices are projected to rise further.