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At a two-week low due to the Fed and rising US stocks

Crude oil prices fell to a two-week low on Wednesday as U.S. crude stockpiles rose for a second straight week after decision by the Federal Reserve to raise its key interest rate by three quarters of the unit.

Brent crude for August delivery lost 2.2% to $ 118.51 a barrel on the ICE Futures Europe level, the lowest level since June 2. West Texas Intermediate crude for July delivery fell 3% to $ 115.31 a barrel on the New York Mercantile Exchange.

July futures traded up 3.2% at $ 7.42 a million UK heaters after losing more than 16% on Tuesday, closing at a five-week low.

US crude production, which has been largely stagnant in recent months, rose 100,000 barrels a day last week to 12 million bpd, its highest level since April 2020, according to the Energy Information Administration. The data also showed an increase in US crude oil stocks and distillate stocks, while gasoline fell sharply in the back of the summer driving season.

The European Central Bank (ECB) pledged new support and a new tool Wednesday to mitigate market disaster that has sparked fears of a new debt crisis at the southern tip of the eurozone, but appears to have frustrated investors looking for bolder steps.

On the other hand, the recent outbreak of coronavirus in China has raised fears of a new phase of restrictions.

Higher oil prices and weakened economic forecasts reduce the outlook for future demand, the International Energy Agency has said.

But persistent supply concerns still keep oil prices close to $ 120 a barrel.

OPEC + is trying to regain its monthly crude oil production quotas, which were hit by a recent political crisis that has reduced Libya’s production. “Because OPEC production is still significantly below the announced level, this will lead to a supply shortfall of about 1.5 million barrels per day in the oil market in the second half of the year,” said Carsten Fritsch, commodity analyst at Commerzbank in Frankfurt. .

Oil prices have gained some support from the tight supply of gasoline. US President Joe Biden has told oil companies to explain why they are not injecting more petrol into the market.

Source: Capital

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