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Oil rises, supported by positive US oil inventories data

Oil rose towards $75 a barrel on Wednesday after data showed US crude stocks fell more sharply than analysts expected, refocusing the market on limited supplies rather than increasing infections with the Corona virus, and the US Energy Information Administration said on Wednesday that crude stocks fell by 4.1 million Barrels in the week ending July 23, gasoline and distillate fuel stocks also fell.
The recovery in implied demand for both gasoline and distillates, in addition to lower (SE:2030) refinery operations, encouraged a decent inventory draw for both, said Matt Smith, director of commodity research at ClipperData. Brent crude rose 18 cents, or 0.2 percent, to $74.66 A barrel after recording its first decline in six days on Tuesday, and US West Texas Intermediate crude rose 43 cents, or 0.6%, to $72.08.
Oil has risen 45 percent this year thanks to recovery in demand and supply restrictions by the Organization of the Petroleum Exporting Countries and its allies known as OPEC +, and OPEC + agreed to increase supplies by 400,000 barrels per day from August, which led to the cancellation of further record supply cuts last year, But some analysts consider this too low given the expected recovery in demand this year.
The rise in the number of coronavirus cases worldwide, despite vaccination programs, has curbed the rise in oil prices and remains a concern, along with the latest statement from the US Federal Policy Meeting is also in the focus of investors’ attention, and the dollar was firmer before The meeting, which puts pressure on oil as it makes crude oil more expensive for holders of other currencies.
“We will look at the Fed’s comments today later in the day to provide further support as we expect additional indications of less tight monetary policy,” said Jim Ritterbusch, president of Ritterbusch and Associates LLP in Galena, Illinois.

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