Commodities

Oil Garners Mixed Reviews After Fear Deepens

Oil Garners Mixed Reviews After Fear Deepens

The Thursday morning opened with mixed reviews after the EIA (Energy Information Administration) of the US witnessed a massive draw in crude oil. It led to an increase in price in the Asian market. However, the US Congress’ squabble put a bar on the profits citing the rise in the Coronavirus cases globally and a stimulus package to fight it out.

In the morning, the Brent oil surged to $44.12 (hiked by 0.7%) until 5:02 AM GMT, although, WTI futures plunged to $41.25 (slipped by 0.05%).

Interestingly, EIA saw a draw of 10.612 million-barrel in its inventories, for the week ended on July 24. It was the highest since 2019.

In the meantime, the traders will have to wait for the move of OPEC. The organization may cut the production by 7.7 million barrels a day between August to December. Notably, the initiative was agreed in April and saw and extension in June.

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