Replies to post #47663 on IAHL Corporation (IAHL)

[energybuyer]

Reuters
Oil rises as risk appetite improves, but recessionary fears loom

An oil pumping machine is seen as non-usable gases are being burnt behind it in Sakir
Stephanie Kelly
Wed, July 27, 2022 at 8:35 PM
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By Stephanie Kelly

NEW YORK (Reuters) -Oil prices edged higher in choppy trade on Thursday, buoyed by improved risk appetite among investors as lower crude inventories and a rebound in gasoline demand in the United States supported prices.

However, futures pulled back in mid-morning trade after the U.S. Commerce Department reported the economy unexpectedly contracted in the second quarter, fueling concerns about a recession that could hit energy demand. Consumer spending grew at its slowest pace in two years and business spending declined.

Brent crude futures rose 22 cents to $106.84 a barrel by 11:13 a.m. EDT (1513 GMT), after gaining $2.22 on Wednesday.

U.S. West Texas Intermediate crude (WTI) rose 14 cents to $97.40 a barrel, after rising $2.28 in the previous session.

"When we look at recessionary numbers, if it is a slowdown at this point, it's a minor slowdown," said Phil Flynn, an analyst at Price Futures group. "If you look at demand and supply numbers for oil, we're well below average on supply and demand is holding up better than anticipated."

Investors focused on U.S. crude inventory numbers from Wednesday that showed oil stockpiles fell by 4.5 million barrels last week, against expectations for a 1 million-barrel drop, while U.S. gasoline demand rebounded by 8.5% week on week, data from the Energy Information Administration (EIA) showed. [EIA/S]

"The U.S. consolidated its position as the world's largest petroleum exporter," Citi analysts said in a note, as combined gross exports of crude oil and refined products stood at a record 10.9 million barrels per day.

U.S. crude exports reached a record 4.5 million bpd as WTI traded at a steep discount to Brent. However, in a bullish signal, U.S. crude oil production growth could stall due to a lack of fracking equipment and crews, as well as capital constraints, executives said this week.