Crude oil skyrockets as higher US refinery rates offset surprise inventory build

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Crude oil skyrockets as higher US refinery rates offset surprise inventory build

On Thursday, both US and UK crude oil futures’ prices had gained more than 3.5 per cent despite a flabbergasting US inventory build, as a stable recovery of the US refining activities alongside an ease of demand concerns following a reopening of the global economy, had kept a lid on worries that the newly imposed National Security Law of China to prevail Hong Kong’s pro-democracy protest could have far-reaching consequences including a US-China trade stand-off.

In point of fact, according to an EIA (Energy Information Administration) report released earlier on Thursday, the US crude oil inventories rose by 7.9 million barrels last week due to a rise of imports from Saudi, while the report had initially soured the crude oil futures’ prices.

Nonetheless, as the US refiners appeared to have boosted output and the US Cushing storage hub in Oklahoma had witnessed a downfall of 3.4 million barrels last week, the market had shifted into an affirmative territory.

OPEC+ output cut bubble keeps crude rally on check

Citing statistics, on Thursday’s commodity market closure, the UK crude futures’ prices scheduled to be expired on July gained as much as 3.48 per cent to settle down at $35.39 per barrel, while the US West Texas Intermediate crude oil futures’ prices had surged 4.65 per cent to wind down the session at $33.70 per barrel.

In factuality, over the recent past, crude oil futures’ prices had rebounded sharply over the recent past following a record nosedive into a negative territory, as global economic activities had gathered momentum and an upward spiral in industrial activities in the bloc and China in May had heightened up the worldwide consumptions.

Nonetheless, a growing uncertainty on Kremlin’s commitment to further output cut had kept the crude oil rallies in balance, however, the Saudi-led OPEC members were well-poised to incline a record output cut, OPEC+ sources had unveiled on condition of anonymity.