Crude Oil Prices on Track for Weekly Gain on Supply Concerns, Improving Demand Outlook
Crude oil prices shed some gains early Friday, but are still on track for a weekly increase amid Russian supply concerns and an improving demand outlook in the U.S. and China.
Brent crude lost 0.6% to US$76.05/barrel and West Texas Intermediate crude fell 0.6% to US$72.04/b at last look. However, both are on track for their largest weekly advance since early January.
Caspian Pipeline Consortium oil flows, which carries crude exports from Kazakhstan, fell 30%-40% on Tuesday following a Ukrainian drone attack, Russia said. However, Kazakhstan has pumped record high volumes despite damage on its main export route, Reuters reported, citing industry sources.
Meanwhile, U.S. crude oil inventories increased while gasoline and distillate stocks fell last week, according to data from the U.S. Energy Information Administration. The decreases in gasoline and distillate stocks are providing price support, along with tight supplies in Russia, analysts said in the report.
Global oil demand has also climbed by 1.4 million barrels per day to 103.4 million b/d through Feb. 19, Reuters quoted JPMorgan analysts as saying. Demand is expected to grow further amid cold weather in the U.S. and increased industrial activity in China as people return from holidays.
Source: MTN Newswires
