Bureau Report
Karachi: Oil prices steadied on Thursday after a two-day slump, reflecting the world’s mixed economic recovery from the pandemic, with U.S. demand expected to keep rising, while a second coronavirus wave raging in India has led to more curbs on movement.
Brent Crude was up 18 cents, or 0.3%, at $66.84 a barrel by 0527 GMT, having fallen 3% on Wednesday. U.S. oil gained 37 cents, or 0.6%, to $63.73 a barrel, after a 3.3% drop in the previous session.
“U.S. gasoline demand is holding up well ahead of the driving season,” ANZ Research said in a note. Also, “U.S. airport footfalls increased to 1.85 million, boding well for jet fuel demand.”
Crude inventories in the United States increased by 1.3 million barrels last week, against analysts’ expectations in a Reuters poll for a 1.6 million-barrel rise.
Gasoline stocks were down by 2 million barrels, compared with predictions of an 886,000-barrel fall. Gasoline product supplied, a measure of demand, rose 5% to 9.2 million barrels per day, though this was partly follow-on demand from the Colonial Pipeline shutdown.
Still “India’s falling fuel demand is likely to worsen in May due to movement restrictions,” ANZ said.
