Oil prices increased on Thursday, with the global benchmark Brent reaching $76 a barrel, as US supplies tightened further after contracting to their lowest levels since January 2020. Brent crude oil futures closed at $76.05 a barrel, up $1.31 or 1.75 percent. WTI crude oil futures in the United States rose $1.23, or 1.7 percent, to $73.62 per barrel.
Traders reported on Thursday that data from intelligence provider Genscape indicated that inventories at the Cushing, Oklahoma storage hub have continued to draw. By Tuesday afternoon, Cushing stockpiles had fallen to 36.299 million barrels, down 360,917 barrels from July 23. The Cushing inventory data came a day after the US Energy Information Administration (EIA) announced a 4.1 million barrel drop in domestic oil stockpiles in the week ending July 23. Cushing, the delivery point for the key U.S. oil futures contract, has seen stockpile draws for the past seven days.
A weakening dollar and warnings from Iran that no nuclear deal was imminent boosted the market even more, according to Yawger. Brent rose above $75 a barrel for the first time in more than two years in June, but fell early this month on concerns about the rapid spread of the Delta type of coronavirus and a supply increase arrangement struck by major oil producers.
Despite an increase in coronavirus infections, the United States’ economic recovery is on pace, according to the Federal Reserve, which also mentioned ongoing discussions about the ultimate withdrawal of monetary policy support in a policy statement released on Wednesday. The dollar fell a day after the Federal Reserve said it hasn’t decided when to begin decreasing its bond purchases.The dollar index dropped 0.41 percent to 91.882, its lowest level since June 29. The euro EUR= rose 0.39 percent to $1.1888, its highest level in more than three weeks, thanks to a sluggish dollar. Investor demand for dollar-denominated commodities, such as crude oil, can be boosted by a weaker currency.