The benchmark crude WTI gained $0.79 to settle at $72.53 in today’s trading. The uptick comes after the recent voluntary one million barrel-a-day production cut from Saudi Arabia failed to prop up prices for long.
In addition, the latest numbers from the Energy Information Administration indicate crude inventories in the U.S. declined by about 500,000 barrels for the week ending June 2. Analysts were expecting a rise of nearly 1 million barrels for the week. Earlier, numbers from the American Petroleum Institute indicated commercial oil inventories in the U.S. dropped by 1.71 million barrels during this period.
While concerns over tepid global demand linger, China’s exports dropped by 7.5% and imports by 4.5% over the prior year, pointing to softening domestic demand.
Meanwhile, natural gas also gained $0.067 to close at $2.329 today, equating to a gain of more than 4% over the past month, even as elevated temperatures are expected over the coming weeks.
At $63.79, the United States Oil Fund ETF (USO) remains 5.34% lower so far this year. Here is a list of energy stocks that can be influenced by the latest developments in the energy markets.
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