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Oil Down over Growing Concerns About Supply Tightness

Published 30/06/2022, 03:48 pm
Updated 30/06/2022, 03:48 pm
© Reuters.

By Zhang Mengying

Investing.com – Oil was up on Thursday morning in Asia as concerns about global supply tightness outweighed a build in U.S. gasoline and distillate inventories.

Brent oil futures rose 0.36% to $112.84 by 1:45 AM ET (5:45 AM GMT) and crude oil WTI futures jumped 0.22% to $110.02.

“Crude oil pushed higher in early trading after a bullish inventory… The drawdown was driven by refiners increasing their throughput amid historically high refining margins,” ANZ analysts said in a note.

Wednesday’s U.S. crude supply data from the U.S. Energy Information Administration showed a draw of 2.762 million barrels for the week ended June 24 while U.S. gasoline and distillate stockpiles climbed.

Some analysts think further disruptions such as unrest in producers Libya and Ecuador could support oil prices.

However, concerns over slowing economic growth continued to cap price gains.

“Recently central banks' aggressive rate hikes and a slowdown in the global economic growth have been pressuring commodity markets. Bets of more release of the U.S. oil reserve and OPEC's increase of oil output also retrained the oil market's upside momentum,” CMC Markets analyst Tina Teng told Reuters.

Crude supply data from the American Petroleum Institute released the day before, showed a draw of 3.799 million barrels.

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