US crude oil reserves fall sharply, oil prices jump

(Chinhphu.vn) - According to data released by the EIA, commercial crude oil reserves in the US in the week ending August 15 decreased by more than 6 million barrels, marking the sharpest decline in more than two months and far exceeding market predictions of between 800,000 and 1.2 million barrels.

The return of buying pressure has helped the world raw material market escape from two consecutive sessions of decline. At the end of trading, the MXV-Index increased by nearly 0.6% to 2,181 points.

Photo 1: MXV-Index

Oil prices rebound

According to MXV, yesterday's session witnessed strong buying power returning to the energy market. In particular, Brent oil price inched up to 66.84 USD/barrel, corresponding to an increase of about 1.6%; while WTI oil price also recorded an increase of about 1.38%, to 63.21 USD/barrel.

The increase was mainly due to positive consumption prospects after the American Petroleum Institute (API) and the US Energy Information Administration (EIA) released weekly reports with information on a decline in commercial crude oil inventories in the world's largest economy .

According to data released by the EIA, commercial crude oil inventories in the US in the week ending August 15 fell by more than 6 million barrels, marking the sharpest decline in more than two months and far exceeding market predictions of between 800,000 and 1.2 million barrels. The reason was pointed out to be the surge in crude oil exports in the US, at the level of nearly 800,000 barrels/day.

Meanwhile, total crude oil consumption at US refineries increased by 28,000 barrels per day last week. In addition, US gasoline inventories also fell by nearly 3 million barrels last week, marking the fifth consecutive week of decline, signaling stable domestic demand. As for the API report, crude oil inventories also decreased by 2.4 million barrels, reinforcing the impact of boosting oil prices.

The developments come as the market awaits the outcome of peace talks on Ukraine. Despite positive signs from the meetings between the leaders of the countries, subsequent statements continue to show that there are still many disagreements that need to be resolved. Uncertainty surrounding the negotiation process towards ending the conflict in Ukraine remains a strong factor affecting oil price fluctuations in the market.

In addition, the latest move from Tehran has also raised concerns about the risk of increased political tensions. In a statement yesterday, Iranian Foreign Minister Abbas Araqchi said that the country is not ready to engage in effective negotiations with the US. Currently, OPEC's third-largest crude oil producer has suspended dialogue with Washington, as well as blocking inspections of nuclear facilities by the International Atomic Energy Agency (IAEA).

In the 7 days since the trading session on August 13, world oil prices have increased slightly by 0.9-1.8%. However, this development is not reflected in the price of Platts gasoline on the SGX floor when this commodity decreased by 0.05% in the same period.

Meanwhile, the agricultural market recorded positive buying power with 5/7 commodities increasing in price. Of which, CBOT wheat price unexpectedly jumped 1.4% to 185.7 USD/ton, thereby helping this commodity escape the lowest bottom in the past 5 years.

According to MXV, wheat prices in yesterday's session were supported by a combination of unfavorable crop information, falling inventories in some key exporting countries and vibrant international trade activities.

Source: https://baochinhphu.vn/du-tru-dau-tho-my-giam-manh-gia-dau-bat-tang-102250821135442512.htm